Bitcoin Slumps After Whale Sale

After being as high as $117,000 following Fed Chairman Powell’s speech at the annual Jackson Hole symposium, bitcoin has slumped lower and is now trading at $110,000 after a whale reportedly sold over 24,000 bitcoins (approximately $2.4 billion) on Sunday triggering a flash-crash.

Simon Peters, Crypto Analyst at eToro shares: With the price having broken and trading below the recent $112,000 support level, we could see further moves to the downside. In addition, and not a great omen, is that September tends to be a month of the year, more often than not, which has seen a negative performance for the bitcoin price.

There may be some hope for the crypto markets to mark a comeback this week though, as we have more economic data in the form of GDP (Gross Domestic Product) figures, unemployment claims and PCE (Personal Consumption Expenditures) inflation data coming out from the US.

A slowing economy, higher unemployment claims and cooling inflation may boost cryptoasset prices as traders and investors potentially buy the dip and ‘nail on’ a rate cut at the Fed’s upcoming September meeting.

We wait to see.