Bitcoin has been under significant pressure from selling as a large investor transferred 8K BTC to various addresses, including exchanges, coinciding with the highest OTC selling volume since March.
The value of Bitcoin (BTC) took a nosedive this week, dropping below $67,000 yesterday. However, Bitcoin has made a strong comeback today with a 3.26% surge in price over the last 24 hours, reaching $69,440.
Despite this impressive recovery, many investors remain cautious, anticipating a return to bearish trends. This apprehension is fueled by the looming selling pressure that Bitcoin is facing this week.
The CEO and founder of CryptoQuant, Ki Young Ju, revealed that Marathon Digital, a major daily Bitcoin mining company, sold a massive 1K BTC ($69.4M) yesterday. Young Ju suggested that Marathon sold the assets to cover operational costs. This transaction represents the largest miner-related OTC selling volume in a single day since late March.
Adding to the selling pressure is the movement of 8K BTC from an address that has been dormant for 5.5 years. Noted Chinese crypto reporter Colin Wu, citing data from Arkham Intelligence, uncovered that the wallet transferred the 8K BTC to multiple addresses yesterday at 21:37 (UTC+8). Some of the funds were moved to Binance addresses, totaling 1.416K BTC, while other assets were sent to exchanges such as KuCoin, Bybit, and Gate.io.
The transfer of funds to exchanges typically indicates an intention to sell. The movement of these funds to exchanges obscures what happens to them next, as blockchain data does not provide insight into their ultimate destination.
Additionally, the mysterious user also transferred 150 BTC to Wintermute, an algorithmic trading firm. Other transactions highlighted by Wu include the movement of three sums of 882 BTC to three unknown addresses.
The movement of the dormant 8K BTC and Marathon Digital’s sale of 1K BTC are expected to increase selling pressure on Bitcoin as investors brace for the potential bearish impact of these developments.
Despite these challenges, Bitcoin is currently in the green, showing a 3.26% increase in price over the past day to $69,440.
Please note that this content is for informational purposes only and should not be taken as financial advice. The opinions expressed in this article are those of the author and do not necessarily reflect The Crypto Basic’s stance. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic holds no liability for any financial losses incurred.