Bitcoin experienced a 20% loss in a day partly because of the actions of a single whale. Santiment, an on-chain analytics site shared a chart on Twitter which showed that Bitcoin dropped to $47,400 after the second-largest transaction of 2021 was completed.
Whale’s Past Sell-Offs Tracked
The transaction of 2,700 BTC happened when BTC was worth $58K and was worth $156.6 million. The sale piled pressure on the market, snowballing into the largest one-hour candle in Bitcoin’s history.
Sentiment said that there was an 11x exchange inflow spike that initiated BTC’s price correction from its $58.3k #ATH, with further data showing that the address responsible for this transaction had made a $2,000 BTC import March 2020 as the Black Thursday took place. At the time, Bitcoin crashed, recording almost a 60% value loss, and hitting $3,600.
As we noted yesterday, there was an 11x exchange inflow spike that initiated #Bitcoin's price correction from its $58.3k #ATH. Further data combing revealed that an address was responsible for the 2nd largest $BTC transaction of the year, an import of 2,700 tokens to the wallet pic.twitter.com/CTgtJr27np
— Santiment (@santimentfeed) February 23, 2021
This data shows the exact happenings as volatility affected the asset, which managed to recover to $54,000, before trading below $50,000. The whale’s address has made a total of 73 transactions in its one-year existence, for a total of $91,935 BTC imported, with all tokens moving away just minutes after arrival.
Whales in The Spotlight
The recent Bitcoin bull run has put whales on the spotlight as they have been profiting from small wallets selling during price dips. Reports have shown that the number of whale-sized wallets have been growing during this period, while the smallholders have reduced.
Dovey Wan, a founding partner at Primitive and Coindesk advisor tweeted a chart on Feb. 17, 2021 comparing the current bull run to the one in 2017. Wan explained that the chart showed the most interesting side by side of Bitcoin investor profile progress.
the most interesting side by side tells you how Bitcoin investor profile progress –
"whales" diminished as price elevated in the last cycle; new group of whales just keep popping up this time, while shrimps are the weak hands who sold too early
THE GREAT WEALTH TRANSFER pic.twitter.com/DK3u2crjts
— Dovey “Rug The Fiat” Wan🪐🦖 (@DoveyWan) February 17, 2021
Wan further stated that in the last cycle, whales diminished as price elevated while this time, new group of whales keep popping up, and shrimps being those who sold too early. She called this the great wealth transfer.
Some people believe that the market was overextended and pessimists claim that the bubble-like process had been long underway. Other people are arguing that this is a usual occurrence in crypto trading and nothing to worry about.
A response on the data from Santiment states that it would be overambitious to claim that the actions of a single address could have the power to dip BTC by almost 15%.
@santimentfeed wants us to believe this address alone, whose entire transaction according to data provided amounts to less than $160M, was able to dip $BTC, an asset with a 24h trading volume of $100B+, by about 15%. No. Doesn't explain current dump in other markets like stocks
— His Royal Awesomeness (@LordSimult) February 23, 2021
Santiment, however, said that although the address alone might not have triggered the price retracement of BTC, it was one of the contributing factors.
Image courtesy of pixabay