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The Panic Was Detonated by The News of U.S. Department Recover The Ransom

— Coins accumulated to the hands of whale holders

The price of cryptocurrencies dropped significantly on June 8th. The biggest drop in one trading day of BTC’s price was 14% and $31,000,while the price of ETH dropped by 17 % as it approached $2,300. We believe the most probable cause was the negative news that the U.S. Department of Justice recovered $2.3 million from its investigation into cryptocurrency ransomware cases. This then triggered what is known as panic selling. According to Glassnode, the total net transfer volume of Bitcoin from the exchange hit a new high point since November 2019, which was 29,902 BTCs, $1.01 billion.

Source: Glassnode

On June 7, Lisa Monaco, the U.S. Department of Justice’s deputy attorney general, said a move on Monday had recovered some of the ransoms paid by Colonial Pipeline for a total of 63.7 BTC, which was worth about $2.3 million at the time. On May 7th, the largest U.S. fuel transportation pipeline company Colonial Pipeline was attacked by a ransomware virus, which disrupted 45% of fuel shipments in the east of the U.S. The Russian-based hacking group known as DarkSide was the perpetrator of the attack. Colonial Pipeline eventually paid 75 BTC (about $4.4 million at current prices) for detox tools.
The focus of the market’s attention on this event is whether Bitcoin’s privacy and security can be effectively protected. However, the FBI was able to recover the ransom paid by Colonial Pipeline not because of security concerns on the Bitcoin network, but because of a security breach in the wallet used by the hacking group to leak IP information. But panic has spread throughout the market because of the negative news about regulation and taxes.

Source: Santiment

What’s more interesting is that while Investors’ concerns have triggered a new round of declines, Bitcoin whale addresses holding 1k+ Bitcoin are back to holding 7.88M tokens according to Santiment. This is the largest amount of Bitcoin held by whales since Mar 14. This coincides with just 2.65M Bitcoin held by addresses with 10 or less Bitcoin, their smallest amount in 6 months. This means that in the recent crypto market, there is a sign that Bitcoin is in the hands of whale holders. Coins accumulated in the early bull are maturing to Long-Term Holder status at an accelerating pace.