August 14th BTC Transfer and Drop in Price || Crypto Market Volatility Decline




**Yesterday's dump was quite expected though. Those who trade news should know what I'm talking about**. Anyways, the speculations in the market are already indicating extreme fear that the market will still fall and that FED would crash the market badly.



This was a case study to what happened yesterday as there was major news that impacted the movement of bitcoin downwards. **Bitcoin collapsed to $56k with a 6% decrease of decline.**This favoured the shorters of bitcoin as they earned massively from the space. **What actually happened that made bitcoin drop from $61k to $56k?**




**Let's do some analysis. As of 5Am to be precise on August 14**, the US government or authorities transferred nearly $600 million worth of bitcoins which was approximately 10k BTC. This assets was transferred to the coinbase prime platform which implies 10k BTC was removed from the market. Against this background, the rate of BTC collapsed due to such deductions.



**_{screenshot from the telegram group I'm in}**

**The US authorities have over 202k BTC in their account from analysis done.** Early this year, the authorities said that they plan to sell these crypto assets they are holding and they did transferred 2000 BTC from the frozen funds to coinbase prime.


**According to Arkham intelligence**, the transfer was made from an address linked to the US department of Justice and transferring funds out from an wallet often indicate an intent to sell them. On the morning of August 15, the negative trend continues as it fell the night of August 14th. The price fell from **$61k to $57k and then later in the day, it fell to $56k**, creating a long red candlestick.





Now let's throw some light on the inflation issue. The Fed's Mouthpiece gave a quick analysis on the inflation in US, highlighting the concerns about seasonal factors. Some analysts argue that the high inflation data from the first quarter of 2024 is the anomaly which has disrupted series of readings that had been approaching the inflation target since last summer and the inflation has consistently been near pre-pandemic levels since April.




They also said that so far this year, the core inflation has been lower each month with the exception march, 2024. **The volatility decline seen yesterday made institutional sellers who dominate the market, recoup substantial profits**, offsetting the losses incurred over the past months due to market fluctuations. This dump again may be expected as bitcoin may troll down to $54k but won't go beyond the $50k mark as analysis has been done.




So if you're trading, you need to trade with caution to avoid losses. Throughout this week, the market has been so unstable with sharp pumps and declines in the market. A lot of people lost funds while others made huge profits from the market as the case may be.


Now let's talk about the trades or how I benefitted from this fluctuating market. I made some analysis using the moving average indicator and other indicators to look for signals and good entry points. No one knows the prediction of the market next week or next month. Manipulations can occur majorly affecting the price of bitcoin. Our hope is that October and November would be good months for the crypto ecosystem.