Bitcoin and other cryptocurrencies have experienced a significant decline in prices as a new week begins. The leading cryptocurrency on the market, Bitcoin, fell below $61,000 today, a level not seen since February 2024 when it experienced a substantial surge. Analysts believe that this recent downturn is a result of large sell-offs by Bitcoin miners, as well as the German government transferring a significant amount of BTC to exchanges. Additionally, the overall negative sentiment in the market has contributed to the decline.
According to data from analytics platform IntoTheBlock, Bitcoin miners have sold over 30,000 BTC, equivalent to approximately $2 billion, since June. This is the fastest pace of selling in over a year and is attributed to the reduced margins caused by the recent halving.
At the time of publication, the price of Bitcoin was quoted at $61,199.41, representing a 4.7% decrease in the last 24 hours. Ethereum also experienced a 5.0% drop, while BNB, Solana (SOL), and XRP retraced by 3.2%, 4.9%, and 1.8%, respectively. Toncoin (TON), Dogecoin (DOGE), and Cardano (ADA) followed suit, experiencing declines of more than 4%.
In a recent on-chain analysis by CryptoQuant, it was suggested that Ethereum’s Market Value to Realized Value (MVRV) indicator indicates potential growth for the altcoin market. The analysis company noted that Ethereum’s MVRV is rising at a faster pace than Bitcoin’s, which historically leads to other alternative cryptocurrencies following suit. MVRV is a tool used to assess the valuation of a digital asset by comparing its market capitalization with the realized capitalization.
It is important to note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.