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Miners making massive transfers, exchanges in chaos, what happened in the market under the "Simpson pattern"?

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Miners making massive transfers, exchanges in chaos, what happened in the market under the "Simpson pattern"?

Yesterday morning, the price of Bitcoin surged from around $9,700 to a high of $10,383 within a few minutes, breaking the $10,000 mark, and then consolidated around $10,100. Unfortunately, Bitcoin still struggles to hold above $10,000. Let's review what major events took place in yesterday's "Simpson" market for Bitcoin.

The "Simpson Pattern" of Up and Down

Around 10:30 p.m., the price dropped from $10,000 to a low of $9,266, fluctuating up and down within 24 hours. This pattern has been defined by the online community as the "Simpson Pattern," as shown in the image below:

Source: ethereumworldnews

Large Bitcoin Transfers from Mining Pools Before the Big Drop

According to CryptoQuant CEO Ki Young Ju, the significant drop may have been the result of miners selling off large amounts of Bitcoin. Ki Young Ju pointed out that before the Bitcoin drop, there were massive fund transfers from mining addresses. Data shows that over 2,300 Bitcoins were moved out of mining addresses in a short period. A substantial portion of these outflows came from an unknown mining pool, which had previously shown large transfers before the Bitcoin drop on May 20th.

Some media outlets view this phenomenon as a sign of the unknown mining pool shutting down. However, it is believed that this is likely just the miner selling Bitcoins acquired through mining at target prices, indicating short- to mid-term strategic selling, rather than surrendering or other similar actions.

Exchange Issues Amidst Intense Volatility

Intense price fluctuations led to two major liquidation events in the Bitcoin futures market within 24 hours. The image below shows the Bitcoin liquidation data from the BitMEX exchange.

Source: skew

Among all exchanges, BitMEX experienced particularly severe issues. While the lowest contract prices on other derivative exchanges did not drop below $9,000, BitMEX briefly fell to $8,600. This phenomenon may be related to a significant decrease in user numbers on the platform this year, leading to insufficient liquidity and order depth.

In addition to BitMEX's abnormality in yesterday's market, the Coinbase spot exchange also experienced a malfunction during yesterday morning's surge, with the platform unexpectedly shutting down for 44 minutes. This exchange is a major platform in the U.S. market, holding approximately 1 million Bitcoins, more than double that of the Huobi exchange and triple that of the Binance exchange, according to blockchain media The Block'sdata. However, the platform has experienced 4 maintenance shutdowns from March until now. Comments on Twitter show many users are dissatisfied with Coinbase's frequent malfunctions.

Meanwhile, Binance, which operates both spot and futures markets, saw its contract price drop to a low of $9,264.15 during yesterday's downturn. However, Binance had the largest decrease in Open Interest among all derivative exchanges. Even Binance founder Zhao Changpeng stated that this drop had a significant impact on the exchange's insurance fund.

https://twitter.com/cz_binance/status/1267839868333223938?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1267839868333223938&ref_url=https%3A%2F%2Fen.ethereumworldnews.com%2Farthur-hayes-bitcoins-btc-rally-aint-real-until-we-take-out-15k%2F

It's Not a Bull Market Until We Hit $15,000!

Another interesting development is that before the significant Bitcoin drop, BitMex co-founder and CEO Arthur Hayes tweeted that although Bitcoin's recent price performance has been impressive, the rebound at the $10,000 level is not a true bull market rebound. Hayes stated:

"Bitcoin breaking $15,000 is the real bull market."