Analyst Explained the Real Reason for the Decline in Bitcoin, Warned Investors! "It Looks Very Similar to 2020, There May Be More to Come!"

Although the leading cryptocurrency Bitcoin experienced a new ATH, reaching $ 69,300 on some exchanges, this did not last long and $BTC experienced a shock decline from there.

In the face of this decline, Bitcoin fell to $ 59,000.

While it was stated that there was sales pressure behind this decline in $BTC, it was announced that the main reason for these sales was that some miners who mined in 2010 moved $BTC to Coinbase.

According to Coindeks, the first Bitcoin miners are contributing to the selling pressure in $BTC by sending old block rewards to exchanges.

According to data shared by CryptoQuant, just before Bitcoin reached new highs around $69,000 and then dropped to $59,000, 1,000 Bitcoins worth roughly $69 million were moved to Coinbase by addresses more than a decade old.

Stating that these addresses are linked to miners, CryptoQuant analyst Bradley Park said, “Shifting long-dormant Bitcoins to Coinbase, a major crypto exchange, could be the beginning of a sale that will continue.”

“Given that the exchange order book shows liquidity of 5-10 Bitcoins for every $100 price change, a sale of 1,000 Bitcoins is likely to trigger a significant price decline.

“Especially when investors are looking to open short positions against Bitcoin's all-time high, as was the case on Tuesday.”

CryptoQuant analyst stated that the amount of Bitcoin entering the exchanges recently reminded him of the sharp increase in $BTC inflows that occurred before the 40% price drop on March 12, 2020, and warned investors against the possible decline.

*This is not investment advice.