Bitcoin price surges to $69,000, causing miners to sell previous block rewards
Posted: March 6, 2024 4:27 AM Updated: March 6, 2024 4:28 AM
Correction and fact check date: March 6, 2024, 4:27 AM
briefly
Recent Bitcoin price movements suggest the influence of early miners selling previous block rewards, putting pressure on the Bitcoin price.
The recent price movement of Bitcoin (BTC), which saw it surge past an all-time high of $69,000 and then fall to $62,000 after a sharp rise last month, may indicate the impact of early miners selling previous block rewards. It is helping to put pressure on the price of Bitcoin.
According to analysts at CryptoQuant, on-chain data shows that just before Bitcoin peaked and then plummeted, about 1,000 Bitcoins worth about $69 million were transferred to cryptocurrency exchange Coinbase via addresses that were more than 10 years old. It is done. Transferring long-dormant tokens to Coinbase is often seen as a potential precursor to a sale.
Given that exchange order books reveal liquidity of 5 to 10 Bitcoins for every $100 price movement, a potential sale of 1,000 Bitcoins is expected to trigger a notable price decline. This possibility is especially heightened when traders are in a position to go short Bitcoin’s all-time highs, as observed earlier.
According to CryptoQuant analyst Bradley Park, the recent surge in Bitcoin entering exchanges is similar to the significant increase in BTC inflows prior to the 40% price drop on March 12, 2020. This decline coincided with the rapid expansion of COVID-19. , governments around the world have implemented lockdowns and prompted traders to seek safety. After the sell-off, Bitcoin reached a low of $3,850.
Cryptocurrency Market Witness Liquidation
Bitcoin price volatility has led to a significant liquidation of long positions on central exchanges, with a total of over $197 million in Bitcoin positions being liquidated, mostly $100 million, as CoinGlass data shows. Short positions worth $8 million were liquidated.
Considering the broader picture, the entire cryptocurrency market has witnessed the liquidation of over $383 million in long positions in the last 24 hours. This brought cumulative liquidations across major centralized exchanges to $678 million. Liquidation occurs when a trader’s position is forced to close due to insufficient funds to offset losses. This occurs when market movements go against the trader’s position and initial margin or collateral is depleted.
Meanwhile, major altcoins such as Solana (SOL) and Ethereum (ETH) continued their upward trend, recording daily rise rates of 2.5% and 3.5%, respectively. Meanwhile, the largest digital asset by market capitalization has fallen more than 2% in the past 24 hours and is currently trading at $67,245.
Recent Bitcoin price movements reflect the dynamic interplay of market forces, highlighting the resilience and challenges inherent in the ever-evolving digital asset landscape.
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About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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