DeutschIn the early hours of the morning, the crypto market faltered. Bitcoin, still trading stably above $118,000 the day before, suddenly slipped to $115,000 – a loss that startled even experienced investors. The trigger for the price slump was apparently a massive transaction: The investment firm Galaxy Digital is said to have moved over 12,000 Bitcoin worth around 1.4 billion US dollars to crypto exchanges within a few hours.
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Such volumes rarely go unnoticed in crypto trading – and even more rarely without consequences. Especially when they take place at night, when liquidity is low and the market is particularly vulnerable. Industry observers assume that the sudden selling pressure has dragged the price down. Particularly explosive: The transfers took place only a few days after Galaxy Digital had taken over around 80,000 Bitcoin from a wallet that had remained untouched since the Satoshi era – i.e. for around 14 years.
Bitcoin Plunges to $115,000 – What’s behind it?
The question of whether Galaxy Digital is now dissolving these old holdings is fueling speculation. It is still unclear whether the 12,000 transferred coins were actually sold or merely moved. However, the markets reacted promptly – and violently. While Bitcoin is under pressure, another coin is moving into focus: Ethereum. Galaxy CEO Michael Novogratz commented clearly the day before in an interview with US broadcaster CNBC. He expects Ethereum to perform better than Bitcoin in the coming months.
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“The story surrounding Ethereum is extremely strong”, says Novogratz. Two large companies have already included ETH in their balance sheets and are currently raising further capital in order to buy more directly on the market. According to Novogratz, the crucial factor is that the supply of ETH is limited. Should the price rise above the $4,000 mark, this could trigger a so-called “Price Discovery” effect – i.e. a phase in which the price is redefined without a historical reference value.
Ethereum Moves into the Crypto Focus
“The market has been short positioned for a long time. Now we are seeing a change that could clearly push Ethereum into the foreground”, emphasized the ex-Wall Street banker. Whether the Bitcoin setback is now the beginning of a new ETH dominance or remains merely a temporary market movement remains open. The fact is: The sudden chain reaction caused by the billion-dollar transfer has shown how sensitive the crypto market is to large movements.
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Investors and analysts are likely to watch the coming hours and days with eagle eyes. Because with a coin like Bitcoin, which is often regarded as a stabilizing pillar of the crypto market, such an abrupt price movement can quickly spill over to other assets – or initiate a shift in capital. The next turning point? Possibly already in sight. But one thing is certain in the crypto market: Nothing stays calm for long. (mck)
