A certain amount of Bitcoin, which has been dormant for over seven years, is on the move for the fourth time this year. Crypto analysis firm CryptoQuant drew attention to the interesting event in its on-chain analysis Quicktake, which it shared today. The data reveals that about 7 to 10 years of 5,000 BTC was spent in a single block. CryptoQuant states that this move could lead to further declines or consolidation. Here are the details…
What does Bitcoin in action mean?
As highlighted by CryptoQuant, it is worth noting that this is the fourth time such a transaction has occurred this year. In particular, the changing prices for a month before a similar transaction in May drew attention. A Bitcoin price correction was made each time. According to the analysis, on March 29, 10,328 BTC was moved from a static address. At that time, BTC Price was trading at $47,700. Later, this move proved that Bitcoin was at a local top. Then, it resulted in a retreat. Also, on July 20, 1,105 BTC was moved by the idle address.
CryptoQuant Analyst Maartun compares the most recent 5,000 BTC transactions, which took place on August 28 yesterday, to May, when 2,800 BTC moved. However, the author notes that unlike the May transaction, the most recent transaction was not sent to an exchange. Specifically, a survey by CryptoQuant reveals that 92 percent of investors view the news as a bearish trend. Maartun used the following statements:
It is difficult to say what effect it will have on the market. This is definitely not a bullish sign. But I’m not sure if we’ll see further declines or just consolidation.
Over the weekend, there was panic in the markets
cryptocoin.com As we have also reported, the markets had a tough weekend. First, Fed chairman Jerome Powell announced his plans to continue raising interest rates. It is worth noting that after this, the market showed significant signs of weakness. Additionally, the currently defunct Bitcoin exchange Mt. Gox’s repayment plan stands out. Rumors that about 137 thousand BTC were preparing to enter the market further increased the market panic.
Mt. Gox was a leading crypto exchange that handled over 70 percent of all Bitcoin transactions over a decade ago. However, everything collapsed when the exchange lost around 850k BTC in a hack in 2014. As part of a lengthy legal procedure to repay creditors, about 140,000 BTC was recovered. Rehabilitation trustee Nobuaki Kobayashi announced in July that the preparations were complete. The end of August has been given as a tentative date for payments to begin.
The potential release of such a large amount of BTC has made the markets nervous. The prevailing speculation is that creditors will sell their holdings as their original investments in 2014 grew by about 42 times at current prices. However, Eric Wall, one of the creditors, stated that the refund rumors were unfounded. He pointed out that the reimbursement system has not been activated yet.
market outlook
As highlighted by CryptoQuant over the weekend, Bitcoin once again fell below its realized price of $21,700. The analyst firm draws attention to the fact that it is a good area for savings, but warns that the market has not yet formed a bottom. Because exact metrics, albeit positive, are still immature. Meanwhile, Santiment Feed noted that we could see a market bounce as shorts pile up. Currently, BTC is trading below $20,000.
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