As the price of Bitcoin drops below $110,000 and the crash deepens, some facts have emerged about why this is happening at this time. Fingers initially pointed to bearish macro headwinds as the crypto market came under scrutiny. However, on-chain data suggests it may be much simpler than that, and the decline is simply due to good old dumping. More specifically, the old mega-Bitcoin whales are starting to sell off their sizable stacks.
OG Bitcoin whale sells $1.7 billion worth of BTC
A post from Lookonchain, an on-chain data aggregation platform, confirmed that the fall in Bitcoin prices was indeed caused by a massive drop. The post highlights that large amounts of Bitcoin, in the thousands, are moving to crypto exchanges as these large whales begin to profit.
The first of these belonged to an early Bitcoin whale known only as 1011short, who moved large stacks of Bitcoin to various crypto exchanges. In total, the whale deposited 13,000 BTC into various crypto exchanges, which was worth a whopping $1.48 billion at the time of the deposit. Deposits began on October 1st and were sent to exchanges such as Binance, Kraken, Coinbase, and Hyperliquid.
Another popular wallet tied to early Bitcoin adopter Owen Ganden has also recently taken off. Gunden's wallet had 3,265 BTC worth $364.5 million transferred to the Kraken virtual currency exchange at the time. The movement began on October 21st and continued until November.
After these large amounts of BTC were deposited into crypto exchanges, the price of Bitcoin began to fall, suggesting that a crash had begun. However, it is unclear how long these declines will last as Gunden still holds $700 million worth of BTC.
Crash point to selling pressure
The falling price of Bitcoin suggests that much of the average daily trading volume of $65 billion recorded on Coinglass' website is actually coming from sellers. If this situation continues and large whales continue to land, prices could plummet toward $100,000.
However, sentiment has already deteriorated significantly and calls for a new all-time high for Bitcoin prices are becoming louder, which could mean the cryptocurrency is headed for a tipping point that could change the face of things. A sharp reversal in Bitcoin from here could wipe out the shorts and trigger a liquidation cascade.
Featured image from Dall.E, chart from TradingView.com
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