Leading cryptocurrency Bitcoin faced sharp sales entering the weekend. Thus, it fell from the peak levels to 67 thousand dollars. This created confusion in the market. On-chain analytics platform Lookonchain shed light on some of the movements behind this decline.
Bitcoin fell hard, is it because of whales?
cryptokoin.comAs you follow from , Bitcoin dropped by 7% to $67,000 during Asian trading hours. However, it later recovered to around $68,500. CoinGlass data shows that over $100 million in long positions have been liquidated in the last 12 hours. Additionally, a long position worth $167 million was liquidated in the last 24 hours. The reason for this decline is a matter of curiosity. On-chain analytics platform Lookonchain points out a whale. In this context, Lookonchain shared the following:
Why did Bitcoin drop 6.6% today? We noticed that a Binance deposit wallet moved 4,637 BTC ($329 million) to the Binance hot wallet in the last 24 hours. Coincidentally, the deposit wallet also moved 4,876 BTC ($319 million) to the Binance hot wallet during the BTC dollar crash on March 5.
Satoshi The period whale has woken up!
Meanwhile, a Satoshi-era Bitcoin wallet suddenly came back to life after a long period of time. The recent reactivation of the wallet, which has been inactive for 13 years and nine months, stunned the cryptocurrency community. Lookonchain also drew attention to this situation. The analytics platform stated that the wallet in question was a miner’s wallet. In this regard, Lookonchain made the following statement:
A miner’s wallet woke up after nearly 14 years of inactivity and deposited 50 BTC ($3.67 million) to Coinbase. The miner earned 50 BTC from mining on April 25, 2010 and has kept this money until today.
Bitcoin fell to 67 thousand dollars, what’s in the background?
Some analysts describe BTC’s pullback from record levels as a typical bullish respite seen after sharp uptrends. Greta Yuan, Research Manager at VDX, a Hong Kong-licensed exchange, says in a note that the recent surge in BTC prices was too rapid for the market to accurately price it, so a current correction is expected.
Meanwhile, the market is awaiting the halving event next month, when the mining reward will be halved. Adrian Wang, Founder and CEO of Metalpha, notes that he may have been adapting to uncertainties before this event. Wang makes the following statement regarding the issue:
The historical trading volume of Blackrock’s Bitcoin ETF has caused some nervousness in the market, and some stakeholders fear that the price of Bitcoin will rise too much in a very short time and could suffer a sudden crash. The price correction indicates that the market is adjusting its expectations for Bitcoin, given the uncertainties presented by the halving event.
QCP Capital: The decline is temporary!
However, the declines are likely to be short-lived, according to Singapore-based QCP Capital. “As long as daily BTC spot ETF demand remains strong, it is very difficult for these short sells to deal a permanent blow to the uptrend,” Singapore-based QCP Capital said, adding that some volatility is expected over the weekend as the market prepares for the release of FOMC minutes next week.
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