Why did Bitcoin fall below $33K? Coinbase whales might have the answer
21 Jan 2021 #Bitcoin
Bitcoin (BTC) slid under $33,000 for the first time in over a week on Jan. 21 as selling pressure gathered to drive price action lower. Data from Cointelegraph Markets and TradingView showed BTC/USD continuing its downtrend on Thursday, dropping 7.% on the day and failing to bounce off $33,000 support.
The latest move, which brings Bitcoin down over 13% versus its highs from Tuesday, came amid increased selling at Coinbase Pro, the professional trading arm of United States cryptocurrency exchange Coinbase. As Cointelegraph reported, major spikes in volume at Coinbase Pro had accompanied price volatility in recent weeks. This time, it was a dip in the so-called “Coinbase Premium” which signalled selling was underway — the difference in price between the BTC/USD pair at the venue and others suddenly decreased.
“It seems $BTC sellers came from #Coinbase. Coinbase Premium Index has been a negative value since an hour ago,” Ki Young Ju, CEO of on-chain analytics resource CryptoQuant, summarized on Twitter uploading the accompanying chart. Coinbase whales might want $BTC to go lower for consolidation.” A day earlier, Ki had highlighted a corresponding increase in deposits across exchanges from whales, indicating a potential desire to trade or sell BTC at prices at or below the mid-range of its trading corridor between $30,000 and $40,000.
Another trend since Bitcoin began ascending to new all-time highs was a transfer of wealth from small investors to whales, the latter buying up the supply during every price retracement. Despite the sell-off, it was buyers hitting the headlines this week, chief among the investment giant Grayscale, which fixed its biggest-ever one-day BTC purchase worth more than $600 million. In the 24 hours to the end of Wednesday, the company increased its balance by a further 8,000 BTC — far more than the supply being added to the market by miners.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | Volume 24h | |
| 1 |  BTC |
Bitcoin predictions | 82.8% | 27 | $41 899.34 | -4.94% | -11.36% | $788 750 305 790 | $40 244 099 648 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 72.8% | 49 | $2 868.68 | -7.93% | -16.93% | $337 514 704 145 | $23 836 267 851 | |
| 3 |  ADA |
Cardano predictions | 64.8% | 78 | $2.21 | -1.36% | -6.44% | $70 707 217 846 | $5 577 909 016 | |
| 4 |  USDT |
Tether predictions | 92.8% | 1 | $1.000855 | 0.04% | 0.07% | $68 651 337 758 | $88 907 999 368 | |
| 5 |  BNB |
Binance Coin predictions | 63.2% | 78 | $346.29 | -8.40% | -15.35% | $58 223 895 709 | $1 982 362 470 | |
| 6 |  XRP |
XRP predictions | 73.2% | 48 | $0.923671 | -6.99% | -12.99% | $43 151 752 355 | $4 555 191 572 | |
| 7 |  SOL |
Solana predictions | 60.4% | 83 | $136.79 | -7.38% | -1.67% | $40 664 437 987 | $3 870 822 815 | |
| 8 |  USDC |
USD Coin predictions | 94.8% | 1 | $1.000356 | 0.04% | 0.03% | $30 321 351 717 | $3 755 736 180 | |
| 9 |  DOT |
Polkadot predictions | 66% | 74 | $30.15 | -4.22% | -10.16% | $29 779 247 306 | $3 578 542 275 | |
| 10 |  DOGE |
Dogecoin predictions | 62.8% | 78 | $0.206773 | -7.12% | -14.09% | $27 173 987 970 | $2 153 623 197 | |
| 11 |  AVAX |
Avalanche predictions | 61.2% | 82 | $73.10 | -4.94% | 10.67% | $16 103 697 591 | $2 305 680 733 | |
| 12 |  LUNA |
Terra predictions | 68% | 61 | $35.07 | -0.28% | 0.60% | $14 030 135 734 | $2 246 791 189 | |
| 13 |  BUSD |
Binance USD predictions | 91.2% | 1 | $1.000247 | 0.03% | 0.01% | $13 471 537 116 | $6 682 279 999 | |
| 14 |  UNI |
UniSwap predictions | 62% | 74 | $19.30 | -10.07% | -21.54% | $11 806 392 734 | $434 612 988 | |
| 15 |  ALGO |
Algorand predictions | 55.6% | 89 | $1.80 | -8.40% | -10.75% | $10 273 694 698 | $980 104 254 |
