On March 5, Bitcoin surged to a new all-time high (ATH) of $69,000, but the celebration was short-lived as the price experienced a flash crash, briefly dipping below $60,000. This sudden drop was attributed to heavy selling from hodlers, as whales and dormant accounts sought to capitalize on profits.
Data from CryptoQuant revealed a three-day streak of BTC inflows worth $525 million into crypto exchanges, indicating traders were transferring BTC from cold storage to exchanges to cash in on the anticipated ATH.
A notable event was the awakening of a dormant whale after 14 years, depositing 1,000 BTC ($67.1 million) onto Coinbase when the price was at $67,116. This whale had mined the BTC in 2010 when the price was below $0.28, resulting in over $60 million in profit.
While hodlers profited, leverage traders suffered losses, with over $1 billion in leveraged positions liquidated due to price volatility, marking the largest liquidation day since the previous cycle top.
Bitcoin’s binary spending indicator revealed that many hodlers realized profits as the price hit $69,000. Additionally, Coinbase saw the highest selling volume on a daily candle since the FTX crash, indicating significant selling pressure.
Despite the flash crash, a significant portion of Bitcoin remains unmoved for several years, indicating long-term holders’ conviction. Crypto analysts view the crash as healthy for the market, as it reduced volatility and reset high funding rates, signaling a more balanced market sentiment.
Within 24 hours, Bitcoin’s price has bounced back above $66,000, signaling resilience and bringing it within 4% of its all-time high.
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