The recent surge in Bitcoin’s price to a new all-time high of $69,200 was met with excitement among crypto traders, as it seemed like the beginning of a journey towards a six-digit Bitcoin price. However, this euphoria was short-lived, as the price of Bitcoin quickly plummeted to $61,200 in the hours that followed. On-chain data has revealed a significant factor that contributed to this sudden crash – the reactivation of a dormant Bitcoin whale address containing $67.1 million worth of Bitcoin.
According to Spot On Chain, the dormant Bitcoin address had been inactive for 14 years before suddenly coming to life to sell all of its large holdings. This whale address had originally minted 1,000 BTC back in 2010 when the price was below $0.28. At that time, the Bitcoins were worth $280, but by the time they were sold on the crypto exchange Coinbase, the value had soared to $67,116 per coin. This massive sell-off by the long-dormant whale likely added to the selling pressure in the market, resulting in a significant drop in Bitcoin’s price.
The Bitcoin blockchain is home to many active and dormant whale addresses, and the reactivation of old wallets containing substantial amounts of BTC often grabs the attention of investors. While the reactivation of dormant addresses is unpredictable, it does not always indicate profit-taking. In this case, the sudden awakening of the dormant whale address led to a wave of profit-taking among investors, causing the price of Bitcoin to plummet.
Despite the sharp pullback in Bitcoin’s price after reaching a new all-time high, the crypto has since regained its footing and is now trading at $66,915. The recent spike in Bitcoin’s price can be attributed to massive accumulation from traders and institutional inflow into Spot Bitcoin ETFs. While there have been outflows from Grayscale’s ETF, the total net inflow into ETFs reached $332 million yesterday, bringing the total net flow since January 11 to over $8.895 billion. Additionally, Bitcoin whale transactions worth at least $100,000 have totaled $187 billion in the past seven days, indicating significant activity in the market.
The recent price crash in Bitcoin following its new all-time high was driven in part by the reactivation of a long-dormant whale address containing $67.1 million worth of Bitcoin. This unexpected sell-off by the whale address contributed to a wave of profit-taking among investors, causing the price of Bitcoin to drop rapidly. While the crypto has since recovered, the incident serves as a reminder of the unpredictable nature of the cryptocurrency market and the potential impact of dormant whale addresses on price fluctuations. Investors are advised to conduct thorough research and exercise caution when making investment decisions in this volatile market.
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