Ancient miner transfers thousands of bitcoins to exchange, briefly drops below $60,000 after new record high
CryptoQuant, an analytical firm, has pointed out that a similar inflow of Bitcoin into exchanges occurred before the 312 crash in 2020. The firm stated that during the period when Bitcoin reached a historic high of $69,000 and dropped to $62,000, around 1,000 Bitcoins worth about $69 million were transferred to Coinbase, indicating a potential sell-off. The address associated with this transfer had been dormant for over a decade, and CryptoQuant claims that it was previously involved in mining activities.
According to CryptoQuant analyst Bradley Park, considering the market liquidity of Bitcoin in the order book, selling 1,000 Bitcoins could potentially cause a significant price drop, especially when other potential traders are also waiting to short Bitcoin at its new all-time high.
Park also mentioned that the recent inflow of Bitcoin into exchanges reminded him of March 12, 2020. During that time, as the Covid-19 pandemic rapidly spread globally and the US stock market experienced multiple circuit breakers, Bitcoin plummeted from $7,981 to $3,791 (-51.26%), and there was also a significant inflow of Bitcoin into exchanges before the crash.
However, based on CryptoQuant’s overall tweets on the matter, they still maintain a positive outlook on Bitcoin, stating that the recent pullback and volatility are favorable for Bitcoin’s future trend.
