BTC Price Dips After Reaching Record High of 69K Dollars: Holders Sell Off

Crypto News- Bitcoin’s price surged to an astonishing all-time high of $69,000 on March 5th, sending waves of excitement through the crypto community. However, this euphoria was short-lived as the price swiftly plummeted below $60,000 in what can only be described as a dramatic flash crash.

The sudden drop was fueled by a flurry of selling activity from long-term holders, as well as the awakening of dormant accounts and whales eager to capitalize on their profits. CryptoQuant data revealed a significant influx of BTC onto exchanges in the days leading up to the ATH, totaling a staggering $525 million worth of inflows.

BTC Price Dips After Reaching Record High of 69K Dollars: Holders Sell Off

One particularly fascinating event was the emergence of a dormant whale who had been inactive for 14 years. This mysterious entity deposited a jaw-dropping 1,000 BTC (equivalent to $67.1 million) onto Coinbase at a price of $67,116 per BTC. The origins of this BTC trace back to 2010 when Bitcoin was a mere fraction of its current value, highlighting the astronomical profits accumulated over the years.

While hodlers seized the opportunity to cash out, leveraged traders faced a different fate, with over $1 billion in positions liquidated amidst the market turmoil. This marked the largest liquidation event since the previous market cycle’s peak. Additionally, Coinbase witnessed an unprecedented surge in selling volume, reminiscent of the chaos during the FTX crash.

Despite the frenzy of selling and volatility, not all Bitcoin holders were eager to part ways with their digital assets. CryptoQuant data revealed that a substantial portion of BTC, accounting for 45%, hasn’t moved in over three years, while 11% has remained untouched for five to seven years.

Market analysts viewed the flash crash as a necessary correction, helping to alleviate high volatility and reset inflated funding rates. These rates, which signify the difference between futures and spot markets, had reached alarming levels, indicating excessive optimism among long traders.

In essence, while the recent market turbulence may have rattled some investors, it ultimately served as a healthy recalibration for the ever-evolving world of cryptocurrencies.