NEWSLETTER
bitcoin's foray beyond its previous all-time high into new territory was short-lived as the cryptocurrency submerged in the hours after. On-chain data has shown an interesting scenario that contributed to the selling pressure that led to the decline. According to Spot On Chain, a dormant bitcoin address containing $67.1 million worth of bitcoin recently came to life after 14 years of inactivity to sell all of its large holdings.
bitcoin Wallet Wakes Up and btc Price Plunges
bitcoin recorded a new all-time high of $69,200 during the week to surpass the previous record set in November 2021. This long-awaited bitcoin milestone ignited a strong feeling of euphoria among cryptocurrency traders as it marked the first step towards a six-digit bitcoin price. However, this euphoria It was short lived. as the new all-time high sparked a wave of profit-taking among investors, resulting in bitcoin falling to $61,200 in the following hours.
On-chain data from Spot On Chain indicates that this drop was further exacerbated by a long-dormant bitcoin whale. The whale address, which had been dormant since 2010, woke up after bitcoin's new all-time high to sell all of its holdings.
According to Spot On Chain, the whale minted 1,000 btc in 2010, when the price was below $0.28. That would mean that the Bitcoins were worth $280 at the time they were acquired. When sold on the Coinbase cryptocurrency exchange, the Bitcoins were worth $67,116 per coin, suggesting the whale could have made more than $60 million.
A sleeping whale woke up after 14 years to deposit the 1,000 $btc (67.1 million dollars) to #Coinbase to $67,116 ~20 hours ago, which supposedly contributed to the recent market crash!
The whale coined those $btc in 2010, when the price was below $0.28, suggesting that the whale could have caught… pic.twitter.com/VBj6VvzAuH
– Spot on chain (@spotonchain) March 6, 2024
The bitcoin blockchain hosts many assets and inactive whale addresses. The reactivation of old and inactive wallets containing massive amounts of btc bitcoin-giant-awakens-whale-1000-btc-years-slumber/” rel=”nofollow”>like this tends to attract investor interest in who owns them. The reactivation of inactive addresses is impossible to predict and not all of them indicate profit taking.
What's next for btc?
bitcoin's pullback after setting a new all-time high was anticipated by some expert traders. The cryptocurrency has since regained its footing after the crash and is now trading at $66,915.
Most of the recent rise can be attributed to massive accumulation by traders and institutional entities. entry into spot bitcoin ETF. Despite capital outflows from the Grayscale ETF, the total net flow into the ETFs was $332 million. yesterday. The total net flow since January 11 has now crossed $8,895 million. At the same time, bitcoin whale transactions are worth at least $100,000 btc” rel=”nofollow”>now stand up by 187 billion dollars in the last seven days.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/WDdHoSiY/" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc price at $67,000 | Source: BTCUSD on Tradingview.com
Featured image from ABC News, chart from Tradingview.com
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