Bitcoin Price Drops 7%: Binance Fund Flows Impacting Market Sentiment?

Bitcoin price suddenly drops 7%

The price of Bitcoin (BTC) has just experienced a major drop, which comes after hitting consecutive all-time highs. The price dropped directly from $73,000 per coin to $66,000 per coin, a fluctuation that lasted only a few hours. This decline coincides with the movement of a large number of large funds in the market.

Could Binance’s Fund Flows Be Reason for Bitcoin Price Drop?

According to data shared by Lookonchain, one of Binance’s deposit wallets transferred 4,637 Bitcoins (worth approximately $329 million) to Binance’s hot wallet in the past 24 hours. Another similar transaction was traced, which aroused suspicion among traders.

Another transaction occurred on March 5 when Bitcoin prices were falling, with a deposit wallet transferring 5,876 Bitcoins (worth approximately $319 million) to Binance’s hot wallet. These sudden inflows of large amounts of Bitcoin have raised questions about the possible impact on market sentiment.

The price of Bitcoin has fallen by more than 7% in the past 24 hours, causing the market to enter a semi-collapse state. Meanwhile, BTC prices have surged by around 50% in the past 30 days. Therefore, this drop is seen as a normal correction in the market, but it is still uncertain whether the crypto market will decline further before the next surge.

Analysts reportedly believe that Bitcoin’s pullback is natural as it comes after multiple high-speed gains.

Will this price drop change market sentiment?

The oldest cryptocurrency, Bitcoin now has an average price of around $67,876 per coin. The price has fallen 7% from its all-time high of $73,750 on March 14. However, Bitcoin’s 24-hour trading volume rose by 65% ​​to $76.7 billion. The market capitalization is $1.33 trillion.

Data from Coinglass shows that more than approximately $526 million in bullish cryptocurrency bets were liquidated in the past 24 hours. This is the highest number in about two weeks. The total liquidation amount reached US$687.8 million. Approximately 195,000 traders were liquidated during this period, with the largest single liquidation occurring on OKX crypto exchange BTC-USDT-SWAP for $13.3 million.

Notably, funding rates for Bitcoin perpetual contracts have declined, indicating a change in market sentiment.Cumulative market capitalization fell 5.6% over the past day to $2.61 trillion.