The reason for the fall in the price of Bitcoin: Arthur Hayes speculates

Bitcoin price fell towards $53,000, losing more than $17,000 since last Monday. This has been one of the cryptocurrency’s worst weekly performances in its entire history.

In the last 24 hours alone, $840 million worth of leveraged positions were liquidated due to the market decline.

Source: Coinglass

Earlier in the week, CryptoPotato outlined three possible reasons behind the bloodbath, including the weak US economy, uncertainty over the US Federal Reserve’s fiscal policy, as well as funds flowing out of exchange-traded funds.

Now, Arthur Hayes, the former CEO and one of the co-founders of what was once the largest derivatives trading platform in the cryptocurrency industry, is speculating about another possible reason.

My TradFi birds are telling me that someone big has gone nuts and is dumping all #crypto. No idea if this is true, I won’t name names, but will let the family know if you hear the same?

My TradFi birds tell me someone old has smoked and is leaving it all #crypto. No idea if this is true, I won’t name names, but let the family know if you are hearing the same????

— Arthur Hayes (@CryptoHayes) August 5, 2024

Over the weekend, popular trading firm Jump Crypto, the cryptocurrency arm of Jump Trading, began moving several coins worth hundreds of millions of dollars, culminating in a $46 million ETH transfer . This has led many to believe that the company is liquidating its holdings.

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