Mysterious Dumping Crashes Bitcoin Price Below $8,000
A large-scale selling event from a prominent wallet led BTC prices below $8,000 within minutes.
Bitcoin (BTC) was recovering, when its price sank again, this time due to a large-scale selling event. The liquidation of more than 6,000 BTC saw the price sink, remaining at $7,931.35. There is no explanation on why a large-scale BTC owner would liquidate at around $8,026.
Twitter users noted the strange activity, and some believe it is an event recalling the “bear whale” episode a few years back, when a much larger order was liquidated. This time, another big seller added to the trend, liquidating $100 million’s worth of BTC in just 24 hours.
Despite the recovery in the past 10 days, some believe the crypto market may be set for more drops, or look flat in the longer term. There is still the option for panic-selling, which could bring the prices lower. Trading volumes are just picking up, in the case of BTC, just around $6 billion in 24 hours, after tanking to a low of $4 billion.
At the moment, Binance is seeing the most active Bitcoin trading, although strangely, USDT activity has sank to around 10% from peaks near 15%.
Some believe this is not unusual activity for Bitcoin, which fluctuates up and down by much more, especially if bot trading triggers, or large-scale investor panic sets in, both in buying and selling.
In general, the activity on the Bitcoin network is lower, with just 900 transactions, showing there is hardly a case for panic. Transactions sometimes increase for moving coins to exchanges in cases of dramatic price growth.
One of the most recent dumping events for BTC was the March 7 liquidation of the Mt. Gox haul, held by Nobuaki Kobayashi.