Whale who offered Bitcoin earlier than 2020 crash cashed out $156M earlier than 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 befell.

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 largest one-hour candle in Bitcoin’s historical past.

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

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

Import chart for suspect whale sell-off handle. 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 under $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 typical” for crypto buying and selling, however as Cointelegraph reported, issues had mounted about uncommon inflows to exchanges.

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

“This similar handle additionally made a 2,000 $BTC import final March proper because the Black Thursday correction befell,” 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 worth dips all through Bitcoin’s latest bull run. As Cointelegraph reported, the variety of whale-sized wallets had been rising, whereas smallholders had been lowering.

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

“Probably the most fascinating aspect by aspect tells you ways Bitcoin investor profile progress – ‘whales’ diminished as worth elevated within the final cycle; new group of whales simply preserve popping up this time, whereas shrimps are the weak fingers who offered too early,” Primitive founding companion 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 answerable for a fraction of complete buying and selling quantity and that its affect ought to subsequently be restricted.

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

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