Bitcoin Falls 10% After All-Time High; Rate Cut Hopes Loom

Bitcoin Hits Record High, Drops 10% After Whale Sell-Off and Market Volatility

  • Bitcoin reached a record high of $124,128 on August 14 before dropping over 10% since its peak.
  • The price has declined by 1.4% in the past day and week, 6.6% over the past 14 days, and 5.9% in the last month, according to CoinCodex.
  • Despite the recent drop, Bitcoin remains up 87.8% since August 2024.
  • A single investor sold 24,000 Bitcoin (worth about $2.4 billion), contributing to increased selling pressure.
  • The prospect of a Federal Reserve interest rate cut could bring renewed interest to Bitcoin, especially with September’s typically bearish trend.

Bitcoin reached an all-time high of $124,128 earlier in August, but its price has fallen more than 10% since then. Over the past 24 hours, the cryptocurrency dropped 1.4%, reflecting a similar 1.4% dip over the week. According to CoinCodex, Bitcoin also saw a 6.6% decrease in the last 14 days and a 5.9% drop over the previous month.

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The recent decline follows a period where the price steadily registered lower lows over two weeks. This pattern could indicate further downward movement in the days ahead. Despite these corrections, Bitcoin’s value remains 87.8% higher compared to August 2024.

Analysts suggest the drop is partly due to profit-taking, as investors secured gains after the new price record. The rally in early August was likely influenced by lower Consumer Price Index (CPI) figures for July, followed by a reversal after higher Producer Price Index (PPI) data was released.

A major factor in the increased selling pressure was the sale of 24,000 BTC—worth approximately $2.4 billion—by a large holder, or “whale.” Reports indicate this individual may have held these assets since the early “Satoshi era,” when Bitcoin traded at $10 or less.

Market momentum picked up after Federal Reserve Chair Jerome Powell delivered a dovish speech following the Jackson Hole meeting. There is now increased speculation that the Federal Reserve may lower interest rates next month. A rate reduction typically encourages riskier investments, which could benefit Bitcoin and other cryptocurrencies.

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September has historically been a challenging month for Bitcoin, with many investors becoming more cautious as it approaches. However, a possible Federal Reserve rate cut could help limit volatility as the market moves through this period.

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