Bitcoin Has Now Pumped to $29.7k... What Caused It?
Though there is no guarantee as to what the cause of a price pump is (especially with Bitcoin), Santiment may have spotted a catalyst.
Below is a table of the largest Bitcoin transactions that occurred today on the network. The top 11 of them were all identically sized at 2,000 BTC, and all went to brand new addresses:
8 of them occurred simultaneously at 17:28 UTC. The other 3 occurred simultaneously at 18:25. This is certainly not normal behavior. And to give perspective of how large these moves were, a total of 22K BTC amounts to $655 million at the time of this writing.
Though we can't say for certain whether these transactions matched up for certain, we can see that there were big outflow spikes at the time both of these bunches of transactions occurred, implying that these addresses moved from existing on-exchange addresses to new off-exchange addresses.
As far as whether this rally can be sustained by the crowd, it certainly appears so now based on trading volume. However, we can see that address activity has been quite modest throughout Monday. So this adds to the theory that these 11 massive Bitcoin transactions had a lot to do with the edging to the celebratory level of $30k.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
Thanks for reading!
If you enjoyed this insight please leave a like, join discussion in the comments and share it with your friends!
Never miss a post from brianq!
Get 'early bird' alerts for new insights from this author