TL;DR
- Massive sale of Bitcoin mined in 2010 valued at $69 million before the latest all-time high indicates a possible connection to the recent BTC price correction.
- The lack of liquidity in the market exacerbated the impact of the massive sale, resulting in widespread liquidations of leveraged long positions, with over $1 billion in liquidations reported on Binance.
- BTC ETFs also experience a significant increase in trading volume, with the ProShares Short Bitcoin Strategy ETF standing out as one of the most active.
The recent correction in the price of Bitcoin has caused a stir in the crypto market, with analysis suggesting a direct connection between this adjustment and a notable massive BTC sale. According to blockchain data, a significant amount of BTC mined in 2010 was observed to have been sold shortly before the cryptocurrency reached its latest all-time high.
This massive sale, valued at approximately $69 million, originated from an address dating back to 2010 and was transferred to Coinbase. This move has been interpreted as a clear signal that early BTC miners, after holding their holdings for over a decade, have decided to capitalize on their profits.
NEW: It appears that a large amount of #Bitcoin mined in 2010 was dumped following the ATH, partially contributing to today's price correction 👀 pic.twitter.com/QeJ2s6kJLb
— Jason A. Williams (@GoingParabolic) March 5, 2024
However, what makes this sale even more striking is the lack of liquidity in the market to absorb such a volume of Bitcoin. This liquidity shortage exacerbated the impact of the massive sale, resulting in a significant drop in the price of Bitcoin. As a result, widespread liquidations of leveraged long positions occurred, with over $1 billion in liquidations reported on Binance.
Bitcoin Bearish Bets On the Rise
Despite these massive liquidations, BTC term futures continue to trade at a notable premium over spot prices. This has led to cash and carry arbitrage becoming an attractive strategy for investors looking to take advantage of price differences between futures and spot markets.
On the other hand, Bitcoin exchange-traded funds (ETFs) have experienced a significant increase in trading volume. Specifically, the ProShares Short Bitcoin Strategy ETF, which allows investors to bet on a decrease in the price of BTC, has been one of the most active during this period, according to Bloomberg ETF analyst Eric Balchunas.
