tl;dr
Bitcoin's price surge and subsequent drop on Tuesday was influenced by the sale of long-dormant bitcoins by early miners, according to on-chain data from CryptoQuant. The movement of 1,000 bitcoins worth roughly $69 million to Coinbase just before the price peaked and then fell suggests that miners'...
Bitcoin's price surge and subsequent drop on Tuesday was influenced by the sale of long-dormant bitcoins by early miners, according to on-chain data from CryptoQuant. The movement of 1,000 bitcoins worth roughly $69 million to Coinbase just before the price peaked and then fell suggests that miners' actions had a significant impact on the market due to the thin liquidity. Analyst Bradley Park compared this influx of bitcoin into exchanges to a similar situation before the 40% price drop in March 2020, also caused by miners.
- Miners appear to have just sold long-dormant bitcoin, sourced from old block rewards, right when BTC plunged from its record high on Tuesday.
- Given the market's thin liquidity, it could have had an outsized impact on bitcoin's price.
Bitcoin's rapid price ascent during the last month, which culminated in a new all-time high and quick reversal on Tuesday, has meant that some early miners have started selling their old block rewards – putting pressure on bitcoin's price. On-chain data spotted by CryptoQuant shows that, just before bitcoin peaked at new highs around $69,000 and then plunged to $62,000 on Tuesday, 1,000 bitcoin worth roughly $69 million were moved to Coinbase by addresses more than a decade old and that the research firm says are linked to miners. "That time, it was also miners," Park continued.
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