Bitcoin Retraces $69,000 All-time High
06 Mar, 2024 ● Crypto News
On March 5, the price of Bitcoin reached a new peak of $69,000, albeit briefly, as it swiftly experienced a sharp downturn, dipping below $60,000.
This sudden drop was attributed to significant selling pressure from long-term holders ("hodlers"), as well as the activity of several large investors and previously inactive accounts seeking to capitalize on profits.
Data from CryptoQuant revealed a three-day consecutive influx of Bitcoin onto exchanges totaling $525 million, suggesting that traders were transferring their Bitcoin from secure storage to trading platforms to seize the opportunity presented by the all-time high.
One notable occurrence that caught the attention of the cryptocurrency community was the awakening of a dormant whale account that had been inactive for 14 years.
This whale deposited 1,000 BTC (equivalent to $67.1 million) into Coinbase when Bitcoin was trading at $67,116.
Having mined these Bitcoins in 2010 when the price was less than $0.28, the whale has realized profits exceeding $60 million.
While some Bitcoin holders capitalized on the price surge, leveraged traders faced significant losses, with over $1 billion in leveraged positions liquidated due to the volatile market conditions, marking the largest liquidation day since the previous market cycle's peak.
The Bitcoin binary spending indicator indicated that many long-term holders took advantage of the $69,000 price level to realize profits.
This indicator tracks the movement of Bitcoin based on its supply timeline.
Coinbase also saw its highest selling volume on a daily basis since the FTX crash, indicating substantial selling pressure in the market.
Despite the recent sell-off and price volatility, not all Bitcoin holders are eager to sell.
CryptoQuant data revealed that 45% of Bitcoin has remained untouched for over three years, while 11% has not been moved for five to seven years.
Cryptocurrency analysts viewed the recent flash crash as a positive development for the market, as it helped to eliminate excessive volatility and reset high funding rates.
Funding rates reflect the difference between futures and spot market prices, with high rates suggesting an overly optimistic market sentiment, typically dominated by long traders.
Within 24 hours, Bitcoin's price rebounded above $66,000, a mere 4% shy of its all-time high.
Sources:
https://cointelegraph.com/news/bitcoin-retraces-ath-btc-hodlers-profit
https://x.com/milesdeutscher/status/1765258354715226330
