The price of Bitcoin dipped by more than 10% in the last 24hrs in what appears to be a flash crash following rumors about FBI allegedly hacking private keys to the Bitcoin wallet associated with Colonial Pipeline ransomware hackers, raising security concerns.
The exchange outflow of BTC recorded a new yearly high yesterday as 22.5K Bitcoin were taken off the exchanges. Such a high amount of Bitcoin being moved away from the active market indicate that traders are anticipating a market rebound after more than a month-long bearish sentiment. The price of the top cryptocurrency fell to the sub $30k level in the second week of May on a day when the crypto market lost $500 billion of its market cap. The price of BTC has been consolidating under $40K since then.
It is also important to note that the Bitcoin mining hashrate has returned to the top notwithstanding the recent China crackdown, also worthy of note is that miners have their Bitcoin holdings despite the price going under $40K. The exchange flow from the miner’s wallet has also been on the decline.
The on-chain metrics are still signaling bullish despite the recent price slump. The fundamentals behind Bitcoin is quite strong and many institutional investors are still holding their Bitcoin position strongly while others like Microstrategy make moves to buy more Bitcoin.
Buy BTC and Alts, Stay bullish.