Dogecoin (DOGE), Litecoin (LTC) and Others Are Victims of This Phenomenon

1/ A sudden, strong drop in crypto prices has followed a prolonged period of low volatility. Most assets were reaching significant lows in volatility, making this large move unexpected to many.#Bitcoin #cryptocrash pic.twitter.com/ebRvNlmz7R

— IntoTheBlock (@intotheblock) August 18, 2023

A closer look at market activity reveals a spike in transactions valued over $1 million. Specifically, there has been an increase of approximately 700 such transactions, which closely aligns with the timing of the downward price movement. This pattern strongly suggests that, in the current market scenario characterized by lower liquidity, these large transactions are the primary catalysts driving volatility.

The implications of this are significant. With large transactions having such a pronounced impact on price, it underscores the influence of whales or large holders in the current market environment. Their actions, whether selling or buying in large volumes, can sway the market in noticeable ways, especially when liquidity is thin.

It is also worth noting external factors that might be influencing the market. The preapproval of the Ethereum futures ETF and issues like the 1,000+ ETH stuck in the Shibarium bridge have added to the market's uncertainty.