Bitcoin Slides to Multi-Year Low Amid Ethereum Sell-Off

CryptoQuant's CEO has warned that Bitcoin's bottom is still ahead, despite recent price fluctuations. The warning comes as four dormant Ethereum wallets moved a total of 37,602 ETH from 2018 and began selling into the drawdown.

The coins were originally received in 2018 and represent a significant amount of Ether. This movement has sparked concern that the Ethereum market may be experiencing a downturn.

Meanwhile, Bitcoin has been struggling to maintain its value, hitting a multi-year low with derivatives pointing to an overcrowded short trade. The price dropped to $58,100 before rebounding to $59,700.

The derivatives market shows negative funding rates, indicating that traders are taking on significant risk by short-selling the cryptocurrency. This could lead to further price volatility and potentially a deeper drop in value.