After experiencing a "panic selling" on August 5 that once hit $49,000, the price of Bitcoin continues to rebound and is currently trading at $61,156 as of writing.
Although the hidden worries of the U.S. economic recession seem to be gradually fading, the previous market crash still makes investors worried that the tragedy may happen again. In this regard, this article will take stock of the recent potential selling pressure on Bitcoin and Ethereum, so that investors can understand the market’s selling risks in advance.
Potential selling pressure on Bitcoin
1. BitGo, the exchange suspected of executing compensation for Mt.Gox, transferred nearly US$2 billion in BTC
According to Arkham data, the wallet address "bc1q26" of the suspected cryptocurrency exchange BitGo transferred 33,140 Bitcoins (worth approximately US$1.97 billion) yesterday evening. The community speculates that this is a sign that BitGo is preparing to pay compensation to Mt. Gox’s creditors.
Extended reading: Air Raid Alert》Mt. Gox transferred another $2.25 billion in Bitcoin. Can BTC hold on to 66,000?
There are five exchanges responsible for executing Mt.Gox compensation, Bitbank, BitGo, Bitstamp, Kraken and Japan's SBI VC Trade. Four of the exchanges have already paid most of the funds to creditors, with BitGo being the last to complete the payout.
Although the time for compensation has not been determined, some creditors may choose to sell after receiving Bitcoin, so investors still need to pay attention to the risk of selling.
2. Bitcoin worth approximately US$1.9 billion “hibernated” and became active
In addition, on-chain analyst XBTManager posted on CryptoQuant yesterday that multiple dormant wallets began transferring large amounts of Bitcoin on the chain on 8/11 and 8/12. According to calculations, a total of 31,600 Bitcoins (worth approximately US$1.92 billion) were transferred Transfer to chain:
The recent changes in Bitcoin holdings that have not moved for a long time have caused market fluctuations.
On August 11, 18,536 Bitcoins that had been idle for 2 to 3 years were transferred to the chain, putting downward pressure on the price. A few hours later, another 5,684 Bitcoins that had been idle for three to six months were transferred.
On August 12, a total of 2,588 Bitcoins that had been idle for 6 to 12 months and 2,394 Bitcoins that had been idle for 3 to 5 years were transferred to the chain. In addition, 2,398 Bitcoins held for three to six months were transferred.
XBTManager said that when these long-term idle Bitcoins are transferred, it usually leads to increased selling pressure in the market, which may form downward pressure on Bitcoin prices during periods of low liquidity.
3. Suspected Brother Sun’s address transferred 36.47 million bitcoins worth to Binance
According to monitoring by on-chain analyst Ai Ai, the suspected wallet address of Justin Sun(Brother Sun) transferred 596.6 BTC (worth approximately US$36.47 million) to Binance today. It is understood that the address originally had a total of 1,096 BTC, 500 of which were transferred to the exchange on the 12th, and the remainder was transferred today.
Although the address has not been confirmed to belong to Brother Sun, and the transfer amount is not as large as the previous two, considering Brother Sun's precise operation of selling at high points in the past, this trend is still worthy of investors' reference.
Potential selling pressure on Ethereum
1. Jump Trading sold $46.44 million in ETH
According to Lookonchain monitoring , Jump Trading withdrew 17,049 ETH (worth approximately $46.44 million) from Lido and transferred it out for sale. Currently Jump Trading still holds 28,734 wstETH (worth approximately $78.29 million)
On-chain data analyst Yu Jin tweeted on the 4th that Jump Trading was recently redeeming wstETH worth US$410 million into ETH in batches, and then transferring it to exchanges such as Binance and OKX, indicating that they may be selling. A lot of Ethereum.
So far, in the 9 days since July 25, they have unpacked and redeemed 83,000 wstETH into 97,500 ETH, of which 66,000 ETH have entered the exchange.
According to statistics, there are still approximately US$146 million worth of ETH and wstETH in the Jump Trading address that have not yet been sold, so investors must pay attention to the risk of selling pressure in Jump Trading.
