Bitcoin cost is down more than 10% from the weekend’s new all-time high set above $60,000 after an overnight selloff. The now sizable correction was first presumed to be a huge whale discarding more than $1 billion in BTC on crypto trading platform Gemini, but eventually ended up being something else. Here’s what really caused the correction, and why the marketplace was so easily shaken by what was ultimately a non-event.
Whale Watching: Bitcoin Price Slides More Than 10% After $1B BTC Transfer
Bitcoin rate broke above resistance this weekend, causing the leading cryptocurrency by market cap to blast off to a new record high of $62,000. The breakout pattern appeared similar to the increase from the previous variety, but due to the lack of momentum matching the post-Tesla BTC buy, price action has because toppled over.
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The preliminary cause of the selloff was due to alerts triggering that 18,961 BTC– more than $1 billion in Bitcoin at the time– was relocated to cryptocurrency exchange Gemini. The crypto community, driven by speculation, began taking revenue, hedging positions, and more, preparing for a bigger selloff brought on by a whale of such size discarding their coins.
An internal transfer of$ 1 billion in BTC startled the marketplace into a selloff
| Source: BTCUSD on TradingView.com Beginning late Sunday evening into the overnight Monday hours, the selloff began. Bitcoin has actually now sank an overall of 10% from the weekend’s highs, however as the dust settled this morning, it was exposed that the enormous BTC transfer wasn’t made by a whale at all.
Why Was The Crypto Market So Easily Shaken By Fake News?
According to data from blockchain analytics firm glassnode, the more than $1 billion in BTC was an internal transfer made at cryptocurrency exchange Gemini. Bitcoin specialist Willy Woo states this is now the second time incorrect data has caused a selloff in the market, so why are investors and traders so antsy?
Markets selling off due to phony information saying $1b of BTC streaming into Gemini.
It'' s the 2nd time it'' s occurred in the last 30 days.
Chart: leverage positions getting liquidated as traders sell off. Red dots revealing the timing of the fake inflows. (28k and 18k BTC respectively) https://t.co/bQ8WvajyEJ pic.twitter.com/FtMPW2Oy03
—– Willy Woo (@woonomic) March 15, 2021
Most Bitcoin investors are well in earnings, and comprehend enough about the cryptocurrency to know that those gains can vaporize at the drop of a cent. Past booming market culminated with a $17,000 and 84% collapse in the months after, and that was at a rate of simply $20,000 per coin.
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An 84% crash from current rates, or perhaps a 60% drop from Black Thursday requirements, would take the cost per coin back to between $11,000 to $24,000. And while that may sound extreme, data reveals that Bitcoin has done it several times in the past, and could very well do it again.
That truth alone, has investors and traders who are resting on fat profit prepared to jump the gun.
Included image from Deposit Photos, Charts from TradingView.com