Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip

Bitcoin (BTC) misplaced 20% in a day partly due to the actions of a single whale, new analysis suggests. 

Data from on-chain analytics agency Santiment on Feb. 23 confirmed that BTC/USD dipped to $47,400 after Bitcoin’s second-largest transaction of 2021 passed off.

Ghost of Bitcoin sell-offs previous returns

The transaction, 2,700 BTC value $156.6 million at $58,000 per token, resulted in a sale which piled stress available on the market, this snowballing into the most important one-hour candle in Bitcoin’s historical past.

“As we famous yesterday, there was an 11x trade influx spike that initiated #Bitcoin’s value correction from its $58.3k #ATH,” Santiment wrote in accompanying feedback on Twitter.

“Additional knowledge combing revealed that an deal with was accountable for the 2nd largest $BTC transaction of the 12 months, an import of two,700 tokens to the pockets earlier than a fast sell-off.”

Import chart for suspect whale sell-off deal with. Supply: Santiment/ Twitter

The findings make clear what precisely was taking place as volatility took over for Bitcoin, which managed to get well to $54,000 earlier than buying and selling beneath $50,000 as soon as extra on the time of writing.

Some consider that the market was overextended, with naysayers specifically claiming {that a} bubble-like course of had lengthy been underway. Others argued that it was merely “enterprise as ordinary” for crypto buying and selling, however as Cointelegraph reported, considerations had mounted about uncommon inflows to exchanges.

Santiment famous that the identical deal with had additionally offered instantly earlier than the cross-asset value crash in March 2020. On the time, Bitcoin misplaced virtually 60% of its worth and hit $3,600.

“This identical deal with additionally made a 2,000 $BTC import final March proper because the Black Thursday correction passed off,” it revealed.

“In complete, it is made 73 transactions in its one-year existence, for a complete of 91,935 $BTC imported, with all tokens shifting away inside minutes after arrival.”

Whales within the highlight

Suspicions had lengthy been eyeing whales, who had profited from small wallets promoting throughout earlier value dips all through Bitcoin’s latest bull run. As Cointelegraph reported, the variety of whale-sized wallets had been rising, whereas smallholders had been reducing.

Bitcoin whale addresses vs. BTC/USD chart. Supply: Dovey Wan/ Twitter

“Essentially the most attention-grabbing facet by facet tells you ways Bitcoin investor profile progress – ‘whales’ diminished as value elevated within the final cycle; new group of whales simply preserve popping up this time, whereas shrimps are the weak palms who offered too early,” Primitive founding accomplice Dovey Wan tweeted final week alongside a chart evaluating the 2017 and 2021 bull runs.


Some responses to the analysis in the meantime noted that the pockets in query had been accountable for a fraction of complete buying and selling quantity and that its affect ought to subsequently be restricted.

“We do not consider that one deal with alone triggers the value retracement of the most important crypto asset on the planet, so we actually would not need you to consider it both,” Santiment replied.

“Was this deal with exercise a contributing issue although? Sure.”