Bitcoin’s Price Drops from $69K All-Time High as BTC Holders Sell for Profit

Bitcoin Down Bearish

A long-inactive whale from 2010 suddenly emerged to sell 1,000 BTC at the all-time high price of $69,000, making a profit of $68 million. Bitcoin hit a new all-time high of $69,000 on March 5, but this didn’t last long.

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Shortly after, the price dropped to $67,226 and then experienced a flash crash, briefly dipping below $60,000. This sudden drop was caused by a lot of BTC holders selling off their coins to make profits. Many big players, including whales and accounts that had been inactive for a long time, decided to cash in.


Bitcoin Market Dynamics: Inflows, Dormant Whales, and Liquidations

According to data from CryptoQuant, crypto exchanges experienced three consecutive days of Bitcoin inflows totaling $525 million. This trend indicated that traders were transferring their BTC from cold storage to exchanges, likely to capitalize on the anticipated all-time high (ATH) and take profits.

One notable event that captured the attention of the crypto community was the awakening of a dormant whale after 14 years. This whale deposited 1,000 BTC (equivalent to $67.1 million) into Coinbase when the BTC price was trading at $67,116. Remarkably, this Bitcoin was mined by the whale in 2010 when the price was below $0.28, indicating a profit of over $60 million.

While Bitcoin holders seized the opportunity to profit from their holdings, leverage traders faced challenges. More than $1 billion in leveraged positions were liquidated due to price volatility, marking it as the largest liquidation day since the previous cycle’s peak.

Bitcoin Hodlers and Market Dynamics

Bitcoin Profits and Binary Spending Indicator: The Bitcoin binary spending indicator suggests that many Bitcoin hodlers took advantage of the $69,000 price point to make a profit. This indicator tracks the movement of BTC funds over time based on their supply timeline.

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Heavy Selling on Coinbase: Bitcoin also experienced its highest selling volume on Coinbase in a single daily candle since the FTX crash. This surge in selling activity indicated significant selling pressure in the market.

Long-Term Hodling Resilience: Despite the recent selling activity and price flash crash, not all Bitcoin holders are rushing to sell. According to CryptoQuant data, 45% of Bitcoin hasn’t been moved in over three years, while 11% has remained untouched for five to seven years. This long-term hodling behavior demonstrates resilience and conviction among certain segments of the Bitcoin community.

Market Analysis: Impact of Flash Crash and Bitcoin Recovery

Flash Crash Benefits: Crypto analysts have viewed the recent flash crash as a healthy development for the market. It effectively eradicated high volatility and reset the previously elevated funding rates. These rates reflect the disparity between the futures and spot markets. High funding rates are often seen as a sign of over-optimism, particularly in markets dominated by long traders.

Funding rate analysis. Source: Miles Deutscher on X

Bitcoin’s Rapid Recovery: Within just 24 hours following the flash crash, Bitcoin’s price has managed to bounce back, surpassing $66,000. This recovery brings Bitcoin to a position just 4% away from its all-time high, indicating resilience and potential bullish momentum in the market.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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