Bitcoin (BTC) misplaced 20% in a day partly because of 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 occurred.

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 strain in the marketplace, 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 value correction from its $58.3k #ATH,” Santiment wrote in accompanying feedback on Twitter.

“Additional knowledge combing revealed that an deal with was accountable 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 deal with. Supply: Santiment/ Twitter

The findings make clear what precisely was occurring as volatility took over for Bitcoin, which managed to get better to $54,000 earlier than buying and selling beneath $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 traditional” for crypto buying and selling, however as Cointelegraph reported, issues had mounted about uncommon inflows to exchanges.

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

“This identical deal with additionally made a 2,000 $BTC import final March proper because the Black Thursday correction occurred,” 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 value 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 attention-grabbing facet by facet tells you the way Bitcoin investor profile progress – ‘whales’ diminished as value elevated within the final cycle; new group of whales simply hold popping up this time, whereas shrimps are the weak arms who offered too early,” Primitive founding associate Dovey Wan tweeted final week alongside a chart evaluating the 2017 and 2021 bull runs.

“THE GREAT WEALTH TRANSFER,” she added. 

Some responses to the analysis in the meantime noted that the pockets in query had been accountable for a fraction of complete buying and selling quantity and that its affect ought to due to this fact be restricted.

“We do not consider that one deal with alone triggers the worth retracement of the biggest crypto asset on the planet, so we definitely would not need you to consider it both,” Santiment replied.

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