Satoshi Nakamoto's Bitcoin Holdings Erase $9 Billion in Matter of Days: Details
Bitcoin experienced a sharp decline, dropping below $100,000 for the first time in over four months, with prices reaching as low as $98,950. A total of $1.7 billion was liquidated across the crypto market in the past 24 hours, including $487 million in Bitcoin. Market sentiment remains bearish following October's flash crash and recent comments from Federal Reserve Chair Jerome Powell reducing the likelihood of an interest rate cut. Bitcoin's creator, Satoshi Nakamoto, saw the value of his holdings drop $9 billion in two days, reaching $112.37 billion. Despite the downturn, Bitwise CIO Matt Hougan predicts a bottom is near and expects Bitcoin to hit a new record high by year-end.
Layer-1
Bitcoin Dips Below $100,000 for the First Time in Four Months
Bitcoin fell below $100,000 for the first time in more than four months, starting the week with a sharp plunge. On Tuesday, Bitcoin was trading 1.22% lower at $102,617, after dipping to a low of $98,950. This marked the first time since June 23 that Bitcoin traded below the psychologically significant $100,000 level.
Massive Liquidations in the Cryptocurrency Market
In the last 24 hours, $1.7 billion worth of positions were liquidated across the cryptocurrency market, with Bitcoin accounting for $487 million of the total. Despite its reputation for strong seasonality in October, this year has disappointed traders. The market sentiment has turned bearish, largely fueled by October's flash crash. Crypto traders have generally remained on the sidelines.
Federal Reserve’s Impact on Market Sentiment
Jerome Powell, the Federal Reserve Chair, dampened hopes for another interest rate cut in December, further contributing to the bearish sentiment in the cryptocurrency market. This announcement added to the challenges faced by investors, as they continue grappling with a downward trend.
Satoshi Nakamoto’s Bitcoin Stash Loses $9 Billion in Value
While crypto traders are counting their losses, Satoshi Nakamoto's Bitcoin holdings have also seen a significant decline. According to Arkham data, Satoshi owns 1.096 million BTC (~$112.37 billion), remaining untouched since their inception. On Nov. 3, the value of Satoshi’s Bitcoin was approximately $121 billion, but it has since dropped by $9 billion following two consecutive days of sharp losses. Bitcoin fell from a high of $110,749 on Nov. 3 to a low of $98,892 on Nov. 4.
Optimism Amidst the Decline
Despite the downturn, there is a glimmer of hope for the crypto market. Bitwise Chief Investment Officer Matt Hougan expressed optimism, stating that retail crypto investor selling is nearing 'exhaustion'. In a CNBC interview on Tuesday, he predicted a potential bottom for Bitcoin's price and forecasted that Bitcoin could reach a new all-time high by the end of the year.