Ancient miner moves a thousand bitcoins to an exchange, Bitcoin briefly drops below $60,000 after hitting a new high

Regarding the recent influx of Bitcoin into exchanges, analysis from the institution CryptoQuant pointed out that a similar influx occurred before the sharp drop on December 12, 2020.

Bitcoin Hits All-Time High, Ancient Miner Cashes Out?

CoinDesk quoted online data analysis firm CryptoQuant that during Bitcoin's rise to a new all-time high of $69,000 and subsequent drop to $62,000, about 1,000 Bitcoins worth approximately $69 million were transferred to Coinbase, indicating a potential sell-off.

The address in question has been dormant for over a decade, with CryptoQuant claiming that this address had early mining activity.

CryptoQuant analyst Bradley Park stated:

Given the liquidity of about 5 to 10 Bitcoins moving per $100 price fluctuation in the market order book, selling off 1,000 Bitcoins could potentially trigger a significant price drop, especially with other potential traders looking to short Bitcoin as it hits new all-time highs.

2020 Halving Year Saw a 312 Crash

Bradley Park also mentioned that the recent influx of Bitcoin into exchanges reminded him of March 12, 2020.

At that time, as Covid-19 rapidly spread worldwide, the US stock market experienced multiple circuit breakers, and Bitcoin plummeted from $7,981 to $3,791, a -51.26% drop, with a significant amount of Bitcoin flowing into exchanges before the crash.

'March 12' - The Devil's Day for Cryptocurrencies, Breaking Records

However, according to CryptoQuant's overall tweets on Twitter, they still hold a positive outlook on Bitcoin, noting that the recent pullback and volatility are favorable for Bitcoin's future trajectory.

Current Correction is Very Beneficial for Bitcoin Positivity

“According to this indicator, positivity continues, accompanied by strong fluctuations in the coming days.” – By @abramchart

Dive into the full post 👇https://t.co/T7LCL9FxZJ

— CryptoQuant.com (@cryptoquant_com) March 5, 2024