The price of Bitcoin (BTC) fell 20% in one day, thanks in part to the actions of a single whale. new research suggests.
plate DataThe one from the chain analysis firm Santiment on February 23 showed that BTC / USD fell to $ 47,400 after the second largest Bitcoin transaction of 2021.
The past ghost of bitcoin return on sales
The transaction, from 2,700 BTC valued at $ 156.6 million to $ 58,000 per token, This resulted in a sell-off that increased market pressure and made it the largest hour-long candle in Bitcoin history.
“As we pointed out yesterday, There was an 11x exchange rate hike that started the Bitcoin price correction from its all-time high of $ 58,300“Santiment wrote in comments on Twitter.
“Subsequent data showed that one address was responsible for the second largest BTC transaction of the year, an import of 2,700 tokens into the wallet before a quick sale.”
The results provide clarity on what exactly happened when the volatility hit Bitcoin. which managed to climb to $ 54,000 before trading below $ 50,000 at the time of this writing.
Some believe the market is oversized, and critics in particular claim that a bubble-like process has long been going on. Others argued that it simply “as usual“For trading in cryptocurrencies, however, as Cointelegraph reported, there have been increasing concerns about unusual listings.
Santiment pointed this out The same management had also sold just before the price drop of the crossed assets in March 2020. At that point, Bitcoin lost nearly 60% of its value, reaching $ 3,600.
“The same address also made a BTC transaction worth $ 2,000 last March when the correction happened on Black Thursday.”, revealed.
In total, the company has carried out 73 transactions for a total of 91,935 imported BTC in its one-year existence. All tokens moved minutes after they arrived. “????
Whales are in the crosshairs
Suspicions have long been directed at whales, which had profited from selling small wallets during previous price cuts during Bitcoin’s recent uptrend. As Cointelegraph reported, the number of whale-sized purses had increased while the smaller ones had decreased.
“The more interesting side shows you how the Bitcoin investor profile is developing: The “whales” declined as the price rose in the last cycle. This time around, a new group of whales keeps appearing, while shrimp are the weak hands that have sold out too soon“, tweetedLast week, Primitive founding partner Dovey Wan compared the bullish moves of 2017 and 2021 alongside a chart.
“THE GREAT ASSET TRANSFER,” he added.
Meanwhile some answers to the investigation they pointed out What The wallet in question was responsible for a fraction of the total operating volume, so its influence should be limited.
“We don’t think any direction will cause the price of the world’s largest crypto asset to reverse, so we don’t want you to believe it either.”Santiment answered.
“Was that management activity a factor? Yes.”
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