On 13 June 2022, Bitcoin dipped below $25,000 for the first time in almost 18 months. However, BTC’s on-chain movements have gained momentum. Amid market correction, the supply of Bitcoin at leading digital exchanges has increased sharply.
Whale Alert, a prominent on-chain analytics platform, recently highlighted a transfer worth almost $90 million that involved the movement of 3,500 Bitcoin from Gemini to crypto trading platform Coinbase. The transaction was executed on 12 June at 16:47 UTC.
In a separate transfer on Sunday, 3,000 BTC were moved from Coinbase to an unknown wallet at 17:37 UTC. In addition to the Bitcoin network, transactions across ETH, XRP, and USDT networks have also spiked substantially in the past few days.
On 11 June, a total of approximately 70,000 ETH coins were moved from unknown wallets to crypto exchange FTX. Despite a dip in ETH’s profitable supply, its large movements have jumped in the past week.
Similar to Ethereum, Bitcoin’s price correction has pushed a large percentage of its overall supply into heavy losses.
Commenting on the recent crypto market correction and BTC’s price action, Simon Peters, Market Analyst at eToro, said: “Bitcoin has slumped to its lowest level since the end of 2020, thanks to fears over accelerating inflation in the US. While crypto assets have in the past not moved in step with traditional assets such as equities, in recent times the link between the two has grown ever closer. Now the clearest signal yet that crypto-assets such as bitcoin and ether are moving in lockstep with equities has flashed, as inflation worries have sent stocks and crypto tumbling.”
“The reasons for this are varied, but much of it comes down to institutional holders which calibrate their risk assets in similar ways, be they tech stocks or bitcoin. US monthly inflation dropped in April from 8.5% to 8.3% suggesting price rises had found a ‘top’ – but fresh highs of 8.6% last Friday have rattled equity and crypto markets alike,” he added.