Two wallets have deposited 9,500 BTC to Binance, indicating a possible liquidation of nearly $550 million in cryptocurrency.
According to blockchain analytics firm Lookonchain, these transfers could represent large holders, or “whales,” cashing in on their bitcoin holdings, currently valued at $537 million. Initially, these assets were worth around $575 million when the transfers began.
Lookonchain’s analysis shows a correlation between these transfers to addresses tagged as Binance deposit wallets by Arkham Intelligence and subsequent declines in Bitcoin’s price, likely triggered by large sales.
One of the wallets still holds over 4,300 BTC, valued at nearly $250 million at current prices, with its latest deposit to a Binance address occurring two days ago. The crypto market has been unsettled recently due to movements associated with the repayment of creditors by the hacked exchange Mt. Gox, which has led to massive liquidations. The timeline for these repayments varies, with some creditors waiting up to three months to receive their coins.
According to 10x Research, Bitcoin is expected to fall below $57,000 from over $60,000 on July 4, with a potential drop to $50,000. Breaking the psychological $60,000 benchmark towards $50,000 represents a major shift in market sentiment. Markus Thielen, founder of 10x Research, noted that this decline was foreseeable, citing data from early June that hinted at an overbought market ripe for correction.
The recent 5.44% drop in Bitcoin’s price has impacted investor sentiment and market liquidity, with a 57% increase in trading volume. The 10x Research report suggests that the price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
Thielen explained that most crypto traders tend to be long-biased, but prices often decline once the last buyer has bought, causing a narrative shift. “Following the failed breakout on June 8, some of our trading models turned bearish on June 12 based on pattern analysis,” he said. The report advises traders to prioritize risk management in anticipation of continued volatility.
The sell-off coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of BTC, set to begin in July. According to the 10x Research report, with the $60,000 support broken, “only ill-informed traders are willing to buy here.”
The 10x Research report maintains a cautious outlook for Bitcoin, advising traders to prepare for continued volatility. Thielen noted that the BTC rally in late May and June was driven by expectations of SEC approval for the ETH ETF, but over-positioning led to the recent correction. He suggested that Bitcoin might drop back to $50,000, with a potential further decline to $45,000.