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Analysis

BTC Plunge Triggered by Spontaneous Miner Selling?

Coindesk analyzes that BTC's breakout from its all-time high ($69,000) was triggered by a flurry of selling by early miners, which increased the downward pressure on BTC's price. Shortly before BTC's post-peak plunge to $62,000, a deposit of 1,000 BTC ($69 million) was made to Coinbase from a...

BTC Plunge Triggered by Spontaneous Miner Selling?

Coindesk analyzes that BTC's breakout from its all-time high ($69,000) was triggered by a flurry of selling by early miners, which increased the downward pressure on BTC's price. Shortly before BTC's post-peak plunge to $62,000, a deposit of 1,000 BTC ($69 million) was made to Coinbase from a bitcoin address with a holding period of more than 10 years. The address is believed to be associated with a bitcoin miner. The deposit of long-dormant BTC into a major cryptocurrency exchange could be a prelude to a massive selloff. Considering that every $100 price change on an exchange's order book generates 5-10 BTC of liquidity, a 1,000 BTC selloff could trigger a significant price drop. This is especially likely if traders are waiting to enter short positions at BTC's all-time highs. A similar move occurred on March 12, 2020, when the price of BTC dropped more than 40% as the COVID-19 pandemic took hold. When the sell-off ended, the BTC price bottomed out at around $3,850. BTC is currently trading down 7.05% at $63,633.79 on CoinMarketCap.

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