Why did Bitcoin fall beneath $33Okay? Coinbase whales might need the reply
Bitcoin (BTC) fell below $ 33,000 for the first time in over a week on Jan. 21 as selling pressures mounted to ease price movements.
Coinbase Premium is dropping abruptly
Data from Cointelegraph Markets and TradingView showed that BTC / USD continued its downtrend on Thursday, falling 7% that day and failing to bounce off the USD 33,000 support.
BTC / USD 1 hour candle chart (Bitstamp). Source: TradingView
The latest move, which slashed Bitcoin by over 13% from Tuesday’s high, was due to increased sales at Coinbase Pro, the professional trading arm of the US cryptocurrency exchange Coinbase.
As Cointelegraph reported, large volume spikes at Coinbase Pro have been associated with price fluctuations in recent weeks. This time it was a slump in what was known as the “Coinbase Premium” that signaled that sales were underway – the price difference between the BTC / USD pair at the venue and others suddenly decreased.
Coinbase Premium vs. BTC / USD Chart. Source: Ki Young Ju
“It seems that $ BTC sellers came from #Coinbase. The Coinbase Premium Index has been negative for an hour,” summed up Ki Young Ju, CEO of the on-chain analytics resource CryptoQuant, on Twitter and uploaded the related Chart high.
Coinbase whales may want the BTC value to be lowered for consolidation. “
A day earlier, Ki had highlighted a corresponding surge in deposits between whales’ exchanges, indicating a possible desire to trade or sell BTC at prices that are in the middle of its trading corridor, between $ 30,000 and $ 40,000.
Battle of the Bitcoin whales
Another trend since Bitcoin hit a new all-time high has been the transfer of wealth from small investors to whales, with the latter buying up the supply whenever the price fell.
Despite the sell-off, it was buyers who made headlines this week, head of investment giant Grayscale, who pegged its largest one-day BTC purchase to date, valued at more than $ 600 million. In the 24 hours ending Wednesday, the company added another 8,000 BTC to its balance – far more than the offer miners are adding to the market.
At a virtual conference earlier this week, CEO Michael Sonnenshein outlined the nation-state’s takeover of digital assets and increased interest from financial advisors as two of the main trends that are believed to characterize 2021.