Bitcoin’s foray past its previous all-time high into new territory was short-lived, just like the cryptocurrency submerged in the hours afterward. Data from the chain shows an interesting scenario that contributed to the selling pressure that led to the crash. According to Spot On Chain, a dormant Bitcoin address worth $67.1 million worth of Bitcoin recently came to life after 14 years of inactivity to sell all its major holdings.
Bitcoin Wallet Wakes Up and Crashes BTC Price
Bitcoin registered a new all-time record of $69,200 for the week, surpassing the previous record set in November 2021. This long-awaited Bitcoin milestone caused a strong feeling of euphoria among crypto traders because it marked the first step towards a six-figure Bitcoin price. However, this euphoria was short-lived as the new all-time high set off a wave of profit-taking among investors, leading Bitcoin to fall to $61,200 in the hours that followed.
On-chain data from Spot On Chain indicates that this crash was further exacerbated by a long-dormant Bitcoin whale. The whale address, which had remained inactive since 2010, woke up after Bitcoin’s new all-time high and sold all its assets.
According to Spot On Chain, the whale minted 1,000 BTC in 2010 when the price was below $0.28. That would mean the Bitcoins were worth $280 at the time they were acquired. By the time they were sold on the cryptocurrency exchange Coinbase, the Bitcoins were worth $67,116 per coin, suggesting the whale may have profited more than $60 million.
A sleeping whale woke up after 14 years to deposit all 1,000 whales $BTC ($67.1 million). #Coinbase at $67,116 ~20 hours ago, which would have contributed to the recent market crash!
The whale struck this one $BTC in 2010, when the price was below $0.28, suggesting that the whale might… pic.twitter.com/VBj6VvzAuH
— Spot On Chain (@spotonchain) March 6, 2024
The Bitcoin blockchain is home to many active and sleeping whale addresses. The reactivation of old, dormant wallets containing massive amounts of BTC like these tends to pique investor interest as to who owns them. The reactivation of dormant addresses is impossible to predict, and not all of them indicate profit taking.
What’s next for BTC?
Bitcoin’s pullback after hitting a new all-time high was expected by some expert traders. The crypto has since regained its position after the dip and is now trading at $66,915.
Most of the recent spike can be attributed to the massive accumulation of traders and institutional investors inflows into Spot Bitcoin ETFs. Despite the outflows from Grayscale’s ETF, total net inflows into the ETFs were $332 million yesterday. The total net flow since January 11 has increased now crossed $8.895 billion. At the same time, Bitcoin whale transactions are worth at least $100,000 stand now at $187 billion in the last seven days.
BTC price at $67,000 | Source: BTCUSD on Tradingview.com
Featured image from ABC News, chart from Tradingview.com
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