A Bitcoin whale recently dumped a whopping 59,000 BTC worth over $2.4 million after three to six months, essentially netting an impressive profit of $885 million.
Bitcoin has continued to trade within a bearish trend since it collapsed on Jan. 12, bringing down the rest of the crypto market with it. This discouraging slump wiped out multiple support levels for the premier cryptocurrency, as it dropped to a low of $41,500.
The crypto asset immediately recovered the pivotal $42,000 threshold on that day. However, in the following days, Bitcoin has struggled to retain this price level amid a sustained battle between the bears and the bulls. This trend has kept the asset down.
Bitcoin Whale Sells 59,000 BTC
As sentiments remain low, Bitcoin is now witnessing a surge in selloffs. In a recent significant development, a Bitcoin whale just sold off 59,000 Bitcoin tokens. Prominent market analyst Ali Martinez highlighted this move in a post today.
Citing data from CryptoQuant’s Bitcoin Spent Output Age Bands, Ali confirmed that the Bitcoin whale procured the 59,000 tokens three to six months ago. According to the analyst, the investor in question purchased the assets at an average price of $26,000.
The Bitcoin Spent Output Age Bands is a metric that quantifies the total value of Bitcoin tokens spent or moved within a specified time period.
The metric for the three to six month period shows 59,346 BTC on Ali’s chart. This figure indicates that, yesterday, investors spent or moved 59,346 Bitcoin tokens which were purchased between three to six months ago. The 59,000 BTC dump is part of these tokens.
A Massive $885M Profit
At Bitcoin’s 25-month peak of $48,969 attained on Jan. 11 amid the bullish sentiments surrounding the spot Bitcoin ETF approval, the whale chose not to dump the tokens despite it holding a value of $2.889 billion then. A sale then would have yielded a profit of $1.355 billion.
However, the investor’s choice to hold onto the tokens signified conviction of a much higher price target for Bitcoin. Nonetheless, this has not materialized. The whale dumped the tokens yesterday, with Ali noting that he made a profit of $885 million.
This figure translates to a sale price of $2.419 million, at an average cost of $41,000 per Bitcoin. Note that yesterday, BTC traded between $40,683 and $42,930, defending the $40,000 support while aiming to reclaim and retain the pivotal $43,000 resistance price.
Bitcoin Witnesses Increased Dumps
The 59,000 BTC sale is one of similar multiple moves. Amid the asset’s struggles, long-term holders and whales have been dumping their tokens. Bitcoin metrics such as the aSOPR, the Binary CDD and Exchange Reserves, which measure BTC movements, all show unfavorable values.
The Bitcoin aSOPR has a value of 1.04, showing that investors have been selling their tokens at a profit. In addition, long-term holders have been moving their tokens at a higher pace, as indicated by a Binary CDD value of 0.57.
Moreover, market participants have continued to send their Bitcoin tokens to exchanges. As a result, BTC reserves on exchanges have increased to 2,099,983.87 (2.09 million) tokens. Miners are also actively selling their tokens, as the Miners’ Position Index hit a high 5.2 value.
Bitcoin currently trades for $41,029, down 3.44% over the last 24 hours. The asset needs to hold above the $41,000 threshold to hedge against more sustainable drops. Bitcoin’s 24-hour trade volume has also surged 44% to $27,121,126,640 ($27.1 billion).
