Bitcoin and other cryptocurrencies have experienced a significant price drop at the start of the week. Bitcoin, the largest cryptocurrency, fell below $61,000, a level not seen since February 2024. This drop is believed to be influenced by several factors, including large sell-offs by Bitcoin miners, the transfer of a significant amount of BTC by the German government to exchanges, and the prevailing negative sentiment in the market.
Data from analytics platform IntoTheBlock shows that Bitcoin miners have sold over 30,000 BTC, equivalent to around $2 billion, since June. This is the fastest pace of selling in over a year and is attributed to reduced margins following the recent halving event.
At the time of writing, the price of Bitcoin stands at $61,199.41, down 4.7% in the last 24 hours. Other cryptocurrencies have also experienced declines, with Ethereum dropping by 5.0%, BNB by 3.2%, Solana (SOL) by 4.9%, and XRP by 1.8%. Toncoin (TON), Dogecoin (DOGE), and Cardano (ADA) have all fallen by more than 4%.
In a recent on-chain analysis, CryptoQuant suggests that Ethereum’s Market Value to Realized Value (MVRV) indicator indicates potential growth for the altcoin market. The MVRV indicator for Ethereum has shown a faster rise compared to Bitcoin. This suggests that the Ethereum market is heating up, and historically, when Ethereum performs well, other alternative cryptocurrencies tend to follow suit. The MVRV indicator is used to assess whether a digital asset is undervalued or overvalued by comparing its market capitalization with its realized capitalization.
It’s important to note that the views and opinions expressed in this article are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.