Bitcoin (BTC)’s price dropped to $115k today early morning, marking a substantial fall from recent highs and eliciting increased curiosity from investors and investors.
The asset’s value is currently standing at $115,663, a decline that has provoked questions about the underlying catalysts causing the slump and its possible impact on the wider virtual currency market.
All Eyes Are On Galaxy Digital
New data reported today by market analyst Satoshi Club pointed fingers at digital asset manager Galaxy Digital as (might be) the reason for the fall.
Nine hours before the price fall, Galaxy Digital was spotted, transferring 11,910 BTC worth $1.39 billion from cold wallets, moving them to exchanges, and eventually selling them.
This large-scale transfer has heightened questions over the recent price drop, which saw the asset fall 2.5% in the last 24 hours. This massive transaction happened at the same time when Bitcoin experienced a significant market correction, with analysts accusing Galaxy’s dumping activity as the cause.
This transfer happened amid increased volatility that has caused BTC’s value to experience 2.6% and 2.0% price drops over the past seven days and two weeks, respectively. The timing indicates Galaxy Digital’s intentional strategy to take advantage of recent price gains.
What’s Next For Bitcoin?
Galaxy Digital’s actions alone might not explain the entire intensity of the selloff. Market analysts believe that a general decrease in trading volume of the wider digital asset market and regulatory uncertainty are other catalysts.
Today, the broader market witnessed significant turbulence, with Bitcoin and several altcoins experiencing downturns, pressured by significant fund transfers and rising caution ahead of the U.S. Federal Reserve meeting on July 30.
Traders are waiting for the forthcoming policy meeting. Although market analysts anticipate the Fed to hold rates steady, traders will concentrate on comments from officials to assess the future market direction.
Today, Market analyst Merlijn the trader described Bitcoin’s recent price fall as a “textbook correction,” majorly triggered by selling pressure coming from investors.
He termed the dip as an opportunity and revealed that the asset has formed a clear inverse head-and-shoulders pattern, a bullish chart showing a potential reversal from a downturn to an upturn. This means the asset is preparing to reverse its current downward movement to an uptrend. The analyst marked $140,000 as the next Bitcoin’s target.
