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Recently, 8,022 Bitcoins, worth approximately $738.86 million, were shifted from the prominent cryptocurrency exchange Coinbase, garnering significant attention in the market.
As per reports from the blockchain tracking service Whale Alert, these 8,022 Bitcoins (amounting to $738,863,880) were transferred to an unidentified new wallet.
The identity of the wallet that received this transaction remains unknown, adding an element of intrigue to the transfer. Since this wallet is entirely new, it has ignited speculation regarding the possible rise of a new Bitcoin whale.
This event has sparked conversations about whether it indicates substantial accumulation by whales or major holders, institutional involvement, or simply a redistribution of assets. However, the exact motivations behind this transfer remain ambiguous. Bitcoin Eyes $84,000 Breakthrough as Resistance Weakens
This substantial Bitcoin transfer occurred amid a sell-off in the overall crypto market, which has seen $1.52 billion in liquidations over the last 24 hours.
The price of Bitcoin has fallen to a three-month low of $86,869, influenced by selling pressure in the stock market, as the crypto sector anticipates the next catalyst.
What to Monitor Next?
At the time of writing, Bitcoin has decreased by 8% in the past 24 hours, currently valued at $87,143. According to Glassnode data, this drop has pushed Bitcoin’s trading price below the cost basis of short-term holders (STH) at $92,500, which historically acts as a transitional point between local bull and bear markets.
The MVRV for short-term holders stands at 0.
96, this signifies that short-term investors (STI) have, on average, experienced a 4% decline in their book value. If these short-term investors are unable to recoup their cost basis, the persistent selling pressure from recent purchasers could escalate.
Glassnode emphasizes that the interval between $71,000 and $72,000 is a crucial observation point and notes prior historical peaks followed by declines (such as in May 2021, November 2021, April 2024, and February 2024), when values dropped beneath the cost basis for short-term Bitcoin investors. If historical patterns persist, this could aid in identifying possible downside threats.
The allocation of BTC cost basis indicates that the last notable demand zone emerged between $89,000 and $87,000. Beneath this threshold, there are comparatively few investors with a holding cost until reaching the $71,000 to $72,000 range, which may imply that support in this region is fragile, granting bears greater dominance.
