Bitcoin lost value on Wednesday, extending a sharp fall from the previous session’s drop, as the movement of a large volume of tokens on a well-known exchange stirred sentiment with fears of a major selling event.

The world’s most important cryptocurrency posted a sharp drop, reversing its recent gains and falling below the $60,000 level.

A $1.88 Billion Bitcoin Transfer Sows Fear in the Markets

Whale Alert, an X-profile that analyzes large cryptocurrency transactions using blockchain data, reported that around 30,000 Bitcoin tokens, worth approximately $1.88 billion at today’s exchange rate, were transferred from a cold wallet to the Binance cryptocurrency exchange on Tuesday’s trading day.

Subsequent reports indicated that the transaction was an internal transfer between Binance wallets. However, the transfer jolted traders with fears of a sell event because it suggested a large amount of Bitcoin being moved to an exchange.

The movement of tokens to exchanges usually signals a potential sale, although it was unclear if that was the case.

The news of the transfer increased the selling pressure on Bitcoin, which was already pulling back after a bounce over the weekend.

Bitcoin Capital Inflows Slowing – Glassnode

A report from blockchain research firm Glassnode showed that net capital inflows into Bitcoin had “cooled considerably” in recent months, possibly influencing the token’s performance between $50,000 and $60,000.

The report indicated that investor optimism about the launch of Bitcoin exchange-traded funds had completely waned, and that some balance had been reached between investors holding profitable investments and those with loss-making investments in the token.

However, the report also indicated that activity around Bitcoin had slowed dramatically in recent months, making spot market action the primary driver of short-term prices.

Glassnode warned that periods of lower speculative and market activity precede “an expectation of greater volatility,” which could portend wilder swings in the Bitcoin price in the coming weeks.

Bitcoin has moved within a narrow trading range after touching its all-time high in March, as trading volume for the token fell steadily amid waning retail interest.

Cryptocurrency Prices Today: Altcoins Fall in Tandem with Bitcoin

Cryptocurrency prices in general have followed Bitcoin’s declines against a backdrop of a dearth of positive signs for the sector.

The world’s No. 2 cryptocurrency, Ether, fell 8.6% to $2,464.30, while XRP, SOL, and ADA plunged between 4% and 5%.

MATIC lost 10.4%, and among meme tokens, DOGE lost 6.7%.