Although the leading cryptocurrency Bitcoin experienced a new ATH, reaching $ 69,300 on some exchanges, this did not last long and BTC experienced a shock decline from there.
In the face of this decline, Bitcoin fell to $ 59,000.
While it was stated that there was sales pressure behind this decline in BTC, it was announced that the main reason for these sales was that some miners who mined in 2010 moved BTC to Coinbase.
According to Coindeks, the first Bitcoin miners are contributing to the selling pressure in BTC by sending old block rewards to exchanges.
According to data shared by CryptoQuant, just before Bitcoin reached new highs around $69,000 and then dropped to $59,000, 1,000 Bitcoins worth roughly $69 million were moved to Coinbase by addresses more than a decade old.
Stating that these addresses are linked to miners, CryptoQuant analyst Bradley Park said, “Shifting long-dormant Bitcoins to Coinbase, a major crypto exchange, could be the beginning of a sale that will continue.”
“Given that the exchange order book shows liquidity of 5-10 Bitcoins for every $100 price change, a sale of 1,000 Bitcoins is likely to trigger a significant price decline.
“Especially when investors are looking to open short positions against Bitcoin's all-time high, as was the case on Tuesday.”
CryptoQuant analyst stated that the amount of Bitcoin entering the exchanges recently reminded him of the sharp increase in BTC inflows that occurred before the 40% price drop on March 12, 2020, and warned investors against the possible decline.
*This is not investment advice.
