Early miners’ addresses that have been dormant for more than 10 years have been transferred to Coinbase 1000 BTC

On March 5, the asset retested an all-time high of $69 000

06.03.2024 - 09:57

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What’s new? Early bitcoin miners started sending their coins to exchanges, adding to selling pressure amid the asset’s testing of the all-time high of $69 000. Data from analytics platform CryptoQuant shows that 1000 BTC were transferred to US crypto exchange Coinbase before the asset’s exchange rate surged to a record high. The bitcoins came from multiple addresses, each of which had been storing the asset for more than a dozen years.

CryptoQuant’s data

What else is known? According to CryptoQuant analyst Bradley Park, in a highly liquid environment, a sell-off of 1000 bitcoins is highly likely to cause a significant drop in prices, especially when traders are waiting for an opportunity to open a short position against bitcoin’s record high, as they did on Tuesday, March 5.

Shortly after early miners brought assets on the exchange, the BTC exchange rate collapsed by 12% to $60 861. By the time of writing, it had partially recovered to $66 984.

Park noted that the current influx of BTC on exchanges is similar to the situation in March 2020. Back then, amid the COVID-19 pandemic, governments around the world implemented quarantine measures and miners began to withdraw bitcoin to exchanges, causing its exchange rate to drop 40% and bottom out at $3850.

Amid the BTC correction, the crypto market’s fear and greed index fell by 15 points to 75/100 over the past 24 hours. On March 5, it reached its highest level since February 2021 at 90/100.

According to the Coinglass platform, positions worth $1,06 billion were liquidated in the crypto market overnight, with long positions accounting for 76% of that.

Last July, a wallet that had been dormant for 10 years moved all of its 1432 coins to another address. During the dormant period, they rose in value by 13 409%.

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