Sudden $800 price drop in the bitcoin market on Thursday was caused by several large amount on-chain transactions, exhaustion of bullish trend on the charts, as well as stock market sell-off. This three likely factors have led to the biggest single-day decline of Bitcoin market value in previous two weeks.
On June 12, cybercriminals transferred over $4.1 million in BTC stolen from Bitfinex exchange to unknown wallets. As these transfers were noted by the crypto market community, some investors then began speculating about a price dump.
Another one transaction worth $1.3 billion carried out by an unknown BTC wallet on June 11 also increased the bearish trend on the market. Concerns about possible dumping of large numbers of coins by so-called “whales” may have caused some bulls to exit the market. Further, traders may have taken short positions in anticipation of the big dump.
On Thursday, the Dow Jones Industrial Average (DJIA) fell by 6.9% (1,800 points), that was the strongest decline in the last three months. The sell-off in U.S. equities was too big to ignore for the crypto traders — some of whom likely offered bitcoin on the fear that financial markets could be about to witness another round of panic like that seen in March.