Bitcoin dropped below $32,000 on Thursday as the cryptocurrency lost around 20% of its value since the last week. The selling pressure on BTC is mounting due to significant activities by Bitcoin whales at leading crypto exchanges. Approximately $726 million worth of long BTC positions got liquidated in the last 24 hours.
Glassnode, a crypto market data aggregator, published a report today and mentioned that Bitcoin is facing a severe liquidity crisis as the liquid supply of the world’s largest cryptocurrency dropped significantly during the last few days. According to the mentioned data, Bitcoin whales have taken nearly 270,000 BTC out of the liquid supply.
Bitcoin price has been in a downtrend since 14 January when the price touched $40,000. Despite some positive news in recent days, BTC failed to regain the $40,000 level. The world’s largest cryptocurrency now has a market cap of $590 billion.
Bitcoin’s dominance in the crypto market has decreased significantly since the last week. The current dominance of BTC is hovering around 64%, down nearly 10% compared to December 2020. Anonymous Bitcoin transactions have also increased during the last few days.
Apart from Bitcoin, other cryptocurrency assets like Ethereum, Polkadot and Cardano performed better than the world’s largest cryptocurrency during the last week. Despite the recent crash, Polkadot is still up more than 35% since last week. Ethereum crossed the level of $1,400 earlier this week but failed to register another high due to huge selling pressure. ETH is now up more than 5% in the last 7 days. Cardano and Chainlink posted strong gains last week as the crypto assets are up 10% and 25%, respectively.
The cryptocurrency market had an amazing start in 2021, Bitcoin jumped above $40,000 and recorded an all-time high of $41,500. Ethereum, Polkadot and Chainlink also posted record gains. The recent bearish move decreased the value of Grayscale’s crypto assets under management (AUM) by more than $1.5 billion. Grayscale accumulated nearly 8,000 BTC during the last 24 hours as the total value of its crypto AUM reached $26 billion.