As the price of Bitcoin falls below $110,000 and the crash continues to deepen, some revelations have emerged as to why this is happening. Fingers initially pointed to bearish macro headwinds, with cryptocurrency markets caught in the crosshairs. But on-chain data suggests it could be much simpler than that, and the decline is simply due to old dumping. More specifically, the old mega Bitcoin whales have started selling sizable stacks.
OG Bitcoin Whale Sells $1.7 Billion Worth of BTC
A post from Lookonchain, an on-chain data aggregation platform, confirmed that the Bitcoin price drop was indeed triggered by a massive sell-off. This post highlights massive amounts of Bitcoin, possibly in the thousands, moving into cryptocurrency exchanges as these large whales begin to reap profits.
The first of these belongs to the early Bitcoin whales, known only as 1011short, which moved significant amounts of Bitcoin to various cryptocurrency exchanges. The whale deposited a total of 13,000 BTC into various cryptocurrency exchanges, which was worth a whopping $1.48 billion at the time of the deposit. Deposits went into exchanges such as Binance, Kraken, Coinbase, and Hyperliquid starting October 1st.
Another popular wallet associated with early Bitcoin adopter Owen Gunden has also recently started making moves. From Gunden’s wallet, 3,265 BTC, worth $364.5 million at the time, were transferred to the Kraken cryptocurrency exchange. The movement began on October 21 and continued until November.
After these large tranches of BTC were deposited on cryptocurrency exchanges, the price of Bitcoin began to fall, suggesting that a sell-off had begun. However, it is unknown how long this sell-off will continue as Gunden still holds $700 million worth of BTC.
Conflict points to sell pressure.
The falling price of Bitcoin suggests that a significant portion of the daily average of $65 billion recorded on the Coinglass website is actually coming from sellers. If this continues and large whales continue to unload, prices could plummet to $100,000.
But with sentiment already so bad and calls for a Bitcoin price all-time high growing louder, this could mean the cryptocurrency is heading towards a tipping point that could change things. A sharp reversal in Bitcoin from here could wipe out short selling, which could trigger a liquidation cascade.
Featured image by Dall.E, chart by TradingView.com
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