The value of Bitlayer’s $BTR token dropped dramatically on March 24th, falling from around $0.20 to as low as $0.04 within a day. This steep decline, an 80% loss, erased tens of millions of dollars in value and caused significant worry among those who owned the token.
I noticed some really strange activity with BTR tokens today. A crypto investigator named EmberCN pointed it out on X, using data from Arkham. Basically, a huge chunk – around 141 million BTR, which is about 41% of everything currently in circulation – suddenly showed up in one of Bithumb’s hot wallets. It’s definitely something to keep an eye on, as that’s a significant concentration of tokens in a single place.
Bitlayer (BTR) experienced a dramatic price drop yesterday, falling by 80% from $0.20 to $0.04. It appears that the majority of this selling pressure originated from the Bithumb exchange – potentially indicating price manipulation. Over the past day, 140 million BTR – representing 41% of the circulating supply – flowed into Bithumb. Address: [address omitted].
— 余烬 (@EmberCN) March 24, 2026
As a crypto investor, I noticed something really suspicious recently. Right as the price started to plummet, a bunch of large amounts of crypto suddenly showed up on this Korean exchange. And the trading volume for BTR exploded – CoinMarketCap showed it jumped over 500%! It all happened at the same time, which definitely raised a red flag for me.
From millions in funding to fresh crash
Bitlayer, a project designed to scale Bitcoin using the BitVM technology, was gaining traction in the Bitcoin finance (BTCFi) space. It had attracted significant investment from firms like Polychain Capital, Franklin Templeton, Framework Ventures, and OKX Ventures.
The project generated about $30 million in funding, with many individual investors participating through sales on platforms such as CoinList. While the token release was initially structured with a gradual unlocking process, the amount released each day starting March 25th—only 0.05% of the total supply—is far too small to account for the significant price drop we’ve seen.
Recently, the project has faced accusations online of coordinated efforts to artificially inflate its value, or even outright manipulation. Many users have pointed out similarities to older, harmful patterns seen with lesser-known cryptocurrencies, where the price is quickly driven up and then crashed, leaving regular investors with losses.
As mentioned earlier, a small number of large Bitcoin holders were selling their tokens on Bithumb, which has limited buying and selling activity. This increased the downward pressure on prices and triggered a series of automated sell-offs, worsening the price drop.
As of mid-morning UTC, the Bitlayer team hadn’t released an official statement. However, their X account did announce a node upgrade several hours earlier, and this appears to be the main issue.
This is a developing story. More information will be added as the event unfolds.
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2026-03-24 13:42