Bitcoin’s price has taken another significant dive in the past week or so, with suggestions being that the market is turning bearish. Along with this bearish turn, there is also a bit of bad news emanating out of China – which sparked a price rush previously.
However, that bad news may well have all been FUD as many are placing the drop on the price being catalyzed by a suggestion that Binance’s Shanghai offices were raided. This rumor turned out to be lacking a lot of facts, but still had a negative effect on the market.
Now, with this bearish turn confirm – unfortunately from poor speculation than anything, there appears to be a little more panic with a large transaction in Bitcoin resulting. According to Whale Alert, on Twitter, a massive 46,000 BTC were transferred with the amount registering as high as $337 million.
The BTC was moved from an unknown wallet to another unknown wallet, which is hard to make assumptions about, but the large amount of BTC being moved at a time when the market is in a new lull does not often spell good news.
China appears to be a major player in the sentiment over Bitcoin and its market as despite being removed from the cryptocurrency ecosystem by hardline rules and regulations, the People’s Republic is still a key stakeholder.
When China made the announcement that it was again pushing its efforts towards Blockchain, and there was a feeling that the crypto crackdown may not be as brutal, things flared up in China and the general market.
However, it appears as if this has been noted by the government who have since been spelling out the dangers of crypto in an effort to curb the excitement. That decision also appears to be the reason behind the rumors circling exchange shutdowns. While it was denied that both Binance and Bithumb were raided, there appeared to be official directives to crack down on crypto again.
All of this sentiment in China, as well as the spillover effect, will no doubt have a few crypto Whales worried again. The first notion of China softening its position may have excited big coin holders in the country, but the recent snapback could have them fleeing again.
If this is indeed the case, and the 46,000 BTC being moved is related, there could be a few other big moves in the market that may help drive a further bearish sentiment.