The Bitcoin price has fluctuated a lot in the past few days and although some major investors have bought BTC again, the price is only staying just above the 50,000 US dollar mark. Recently, a veteran miner who was last active 11 years ago moved his Bitcoin – is there now a risk of a crash?
Bitcoin has largely made up for most of its biggest loss in two days since March 2020 . Driven by the renewed BTC investments by Square and MicroStrategy , the price was able to fight its way over the price mark of 51,000 US dollars for a short time on Wednesday.
At the time of going to press, the current Bitcoin Loophole exchange rate is $ 50,524.
Veteran Bitcoin miner shifts 100 BTC
Transaction data from the Bitcoin blockchain shows that a miner moved a total of 100 BTC, currently worth just over five million US dollars, from two different wallets. Since 2010, the value of these coins has increased 622,500 times.
Additionally, since receiving 50 BTC each as a mining reward almost 11 years ago, these two wallets have not had any outbound transactions. Now that this has changed, the question arises where these BTCs have been transferred to.
The blockchain data shows that over half of the coins have been moved to the German peer-to-peer exchange Bitcoin.de. That suggests the whale is planning to sell its bitcoin.
The movement of such old coins is an unusual occurrence as there were only 18 wallet transactions from that time in 2021 . Nevertheless, one should keep in mind that 100 BTC is a comparatively very small amount compared to the total Bitcoin trading volume .
Even if the miner sells his BTC, that should have little effect on the price at the moment.
What does the on-chain data say?
There are currently two negative signals coming from on-chain data. When the bitcoin sell-off started at $ 58,000, large investors deposited very large amounts of bitcoin on crypto exchanges.
Data from CryptoQuant illustrates this and suggests that the sell- off was very likely to have been triggered by large investors who took profits.
The graphic above shows this using the so-called “All Exchange Netflow”. This calculates the difference between the BTC that was paid into or out of the wallets of all crypto exchanges at a certain point in time.
When the netflow is high, it means that investors have deposited large amounts of Bitcoin on crypto exchanges. With a high probability, one can therefore assume that they want to sell this BTC.
In addition, stablecoin inflows into crypto exchanges have slowed. Since Bitcoin hit its all-time high of $ 58,641, the stablecoin available on crypto exchanges has plummeted significantly.
This is not necessarily a sign that the Bitcoin price is falling anytime soon, but it is not ideal for the Bitcoin rally to continue. Based on the stable coin reserves, you can see that a lot of capital has been holding back in the last few days and has not aggressively bought more Bitcoin.
However, it can already be seen that the two on-chain indicators have moved again in bullish or at least more neutral directions. Because of this, it is unlikely that another big BTC sell-off will follow in the next few days. Nevertheless, one should keep an eye on the two indicators.