Bitcoin Drops Below $77K: Who's Behind the Decline?
US-Iran tensions and large-volume sales hit Bitcoin hard.
1Sharp decline in Bitcoin
After surpassing $79,000 on Sunday evening, Bitcoin fell below $77,000 within an hour on Monday morning. This drop coincided with escalating geopolitical tensions after the US struck two Iranian launchers on Larak Island and Iran retaliated against military targets in Jordan. A nearly 3% rise in oil prices and declines in Asian stock markets added pressure to the crypto market.
2Wintermute's massive transfer
On-chain data shows that Wintermute transferred 5,100 BTC (approximately $400 million) to Binance over the past two days. Such large-volume transfers are typically interpreted as pre-sale preparations. Given that similar moves last week triggered another wave of declines in BTC and altcoins, market participants grew nervous.
3Whale movements in Ethereum
Ethereum's price dropped from above $2,500 to below $2,400 within an hour. According to Lookonchain data, a whale or institution deposited 41,000 ETH (over $100 million) onto exchanges. Such large deposits are usually considered pre-sale signals. Nearly $100 million in ETH long positions were liquidated.
4Oil and stock market reactions
Brent crude prices rose nearly 3% to over $90 per barrel. Asian stock markets declined, with the Nikkei down 2%, while South Korea's Kospi and Chinese stocks closed in the red. President Trump's AI video showing the destruction of Iran's key oil region, Kharg Island, further escalated tensions.
5Record liquidations
CoinGlass data shows over $400 million in positions were liquidated in the last 24 hours. Nearly $100 million came from ETH long positions, while $62.6 million came from BTC longs. One trader on Aster faced a $6.12 million liquidation. In total, more than 100,000 over-leveraged traders lost positions.
6Fed impact continues
Rising oil prices following Fed Chair Kevin Warsh's hawkish speech at Jackson Hole on Friday are fueling inflation concerns. The possibility of energy-driven inflation shock could delay central bank rate cuts, creating additional pressure on risk assets.
7Technical indicators flash warning
Bitcoin's drop below $77,000 means a key support level has been broken for technical analysts. If large-volume sales continue, the $75,000 level could be tested. The decline in the ETH/BTC ratio also poses additional risks for altcoins.
8Critical week for markets
In addition to geopolitical tensions, US employment and inflation data to be released this week will be decisive for markets. If selling pressure from big players and the liquidation wave continue, crypto markets could see sharper declines. Investors may remain cautious in the short term.