Bitcoin Under $40,000 As Exchanges See The Largest Single-Day Deposits After March 2020 Crash

Published by
Bitcoin Under $40,000 As Exchanges See The Largest Single-Day Deposits After March 2020 Crash

In another major price crash, Bitcoin (BTC) has corrected another 12% dropping under its crucial support levels of $40,000. Bears are clearly in charge of the market at this point. The recent price crash comes as The People’s Bank of China (PBoC) warns local businesses and institutions of dabbling into Bitcoin and crypto.

This is for the second time in the last three that the BTC price has corrected over 12%. It happens as the exchange deposits spike to new highs. As per the Glassnode data, over 30,000 Bitcoins were transferred to exchanges in a single day during Monday’s price crash. This has been the largest single-day deposit at exchanges after the March 2020 crash.

Courtesy: Glassnode

It looks like there’s clear fear at this point among investors and traders who are not willing to buy the dips. At press time, Bitcoin is trading at levels last seen in February 2021. Also, its market cap has taken a dive under $750 billion. The BTC price crash over the last week has been more than digestible.

The BTC price has corrected by more than 30% with its price crashing from over $57,000 to now under $40,000. Moreover, over $300 billion have been eroded along from the Bitcoin (BTC) valuations. The Bitcoin (BTC) price dominance has also reached a three-year-low to under 40%.

Institutions and Long Term Holders Continue Buying

As the Bitcoin (BTC) price continues to correct further, institutional players and long-term holders have been buying the dips. As per the Glassnode data, the number of accumulation addresses has surged 1.1% over the last week.

On Tuesday, May 18, business intelligence firm MicroStrategy announced another $10 million worth of Bitcoin purchase taking its total Bitcoin holdings to now above 92,000.  However, the fear among investors has peaked to new levels who are now on a “wait and watch” mode rather than “buy the dips”. Speaking to Business Insider, Pankaj Balani, chief executive of crypto derivatives exchange Delta, said:

“Yesterday we saw a lot of volume in the $40,000 puts. In the previous dips, we had seen that the sentiment had not changed as much. This time around, we are seeing change of sentiment. We’re not seeing any signs of bottom-fishing. Consensus seems to be that it’s fallen quite sharply and it can fall a little more. So $35,000 to $38,000 is the zone where most traders are looking at.”

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading

FG Nexus has announced that it will allow shareholders to convert common stock into tokenized…

October 2, 2025
  • Bitcoin News

Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000

JPMorgan says Bitcoin (BTC) is undervalued compared to gold and could rise to $165,000, giving…

October 2, 2025
  • 24/7 Cryptocurrency News

Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand

Derivatives exchange CME Group has announced plans to begin offering 247/7  crypto futures and options…

October 2, 2025
  • Bitcoin News

Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months

Banking giant Citigroup has revised its Bitcoin prediction to $231,000 in the next 12 months,…

October 2, 2025
  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025
  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025