BTC dropped by $10,000 yesterday from $58,000 to $48,000. This was the biggest drop in the history of BTC.
BTC drop or rise can be speculated by a variety of parameters. Some use charts to identify tops and bottoms. Some use fundamentals like upcoming forks, halving, upgrades, institutional level buying, etc to speculate the price movements in BTC.
One of such indicators is exchange inflow and outflow of assets. Let us take Santiment for example and review the BTC price movement.
Santiment provides variety of data and tools to speculate price action of assets. One such tool is the exchange inflow and outflow of assets from certain wallets.
There was a 11x increase in the exchange inflow. This spike led to the correction of BTC from $58,000 towards $48,000.
Prominent Wallet Movement
After analyzing more data, it was observed that a particular wallet was responsible for the second largest BTC transaction of this year. 2700 BTC which approximately equals to $156.6 million at BTC peak price was moved from this wallet to a spot exchange. This probably triggered a dump in BTC price. This same wallet had imported 2000 BTC during the 12th March 2020 BTC crash which was popularly named the Black Thursday event. In total, this wallet has made a movement of 91,935 BTC via 73 transactions in a year.
Such on-chain movements can be tracked via various tools and can provide a good insight of possible major market movements.
BTC is currently trading at a price of $49,000 with a market cap of $908 million.
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Images courtesy of Santiment
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