In brief:
- Bitcoin holder capitulated at significant losses following the latest market crash.
- Trades on OKEx may have lost up to $146 million by capitulating.
- On the flip side, one veteran likely bagged a 96,262% return on investment.
During the recent Bitcoin market collapse, many traders unloaded their holdings at lower prices than they bought them. However, they might have saved money in doing so.
Blockchain intelligence firm TokenAnalyst studies blockchain data and watches Bitcoin being moved in and out of exchanges. The assumption is that when Bitcoin comes from an exchange, it has just been bought, and when money is sent to an exchange, it is about to be sold. TokenAnalyst simply compares the two prices to get a bird’s eye view on the market.
According to TokenAnalyst, traders sold for an average loss of 1.5-7.7% during the market collapse. Which, when stacked up to a 50% drop in the price of Bitcoin, doesn’t seem too bad.
Why did the Bitcoin price crash twice in two days?
The price of Bitcoin has dropped 20% for the past two days running, falling from $9,000 to as low as $4,100. It’s currently back up to $5,400 but it’s changing rapidly. Such declines are not unheard of in the crypto industry but these large back-to-back losses are fairly rare, even for Bitcoin. So, what caused them? The wider market decline The main cause appears to be the crash of the traditional markets. US stocks fell into a bear market on Thursday, as all major indexes fell a further 10%. “...
"As the price drops, consumers are moving large volumes of $BTC quickly to trade or exchange for fiat in order to mitigate losses. We saw a dramatic increase of BTC flowing from consumers wallets to exchanges as price dropped," the report stated.
In particular, TokenAnalyst observed a notable rise in inflows to crypto exchange OKEx. The exchange witnessed 11 deposits totaling approximately 23,000 BTC. Per the data, the BTC held a median purchase price of $12,815 and a deposit price of $6,459. TokenAnalyst figured that if traders sold their holdings then, losses would have added up to $146 million.
But one trader wasn’t worried about making a loss.
Bitcoin miner finds forgotten fortune worth millions
A Bitcoin miner has discovered an old Bitcoin wallet containing a small fortune—worth $8 million. According to a post on Bitcoin forum BitcoinTalk, a self-proclaimed Bitcoin "newbie" mined some Bitcoin using a personal computer back when it was possible to do so—before massive mining rigs took over. It appears they stumbled across the coin only recently and took to BitcoinTalk to find out what to do with the massive stash. 2010 wallet moving coins https://t.co/gSFn1ypESD pic.twitter.com/8rt0lGB...
An amount of 10 Bitcoin, that was bought for just $9.10 in 2012, was deposited to Binance on March 4, when the price of Bitcoin was $8,769. If it was sold, the trader would have bagged $88,000, making a 96,262% return on investment.
Not too bad for a Wednesday.
