After briefly plunging as much as 8% on Thursday to $8,800, BTC has since managed to recover to $9,100.
The driving factor behind the sell-off appears to be technical as investors look to de-risk after a failed resistance push. However, there was a notable event that happened yesterday that could have spooked some investors, or rather, the algorithms that attempt to trade off of that kind of news.
On Wednesday, 40 BTC was moved from an early network adopter wallet that has been dormant since the inception of Bitcoin in 2009.
According to the data, the coins were mined in the first month of Bitcoin’s existence. This fact led many to speculate that it might have been Satoshi Nakamoto, the anonymous creator or creators of Bitcoin, finally coming out of the shadows.
ℹ️ The coins in this transaction were mined in the first month of Bitcoin's existence.
— Whale Alert (@whale_alert) May 20, 2020
However, a quick analysis of the transaction and the associated wallets during that period by researcher Nic Carter and others showed that while it was undoubtedly an early Bitcoin player, it did not come from any of Satoshi’s wallets.
Here's a visualization of the Patoshi pattern with the block that was just spent. The blocks believed to be Satoshi have a specific pattern in the nonce, which this block does not have pic.twitter.com/E86eEs6MZf
— so-called nic carter (@nic__carter) May 20, 2020
Despite this fact, the transaction was enough to send the crypto community into a tizzy and add further narrative to the recent pullback. Time will tell whether bulls can reclaim the momentum for another attempt at the $10,000 level.
50 BTC movement followed by whale alert followed by sell-off pic.twitter.com/YW5ToShywu
— CoinMetrics.io (@coinmetrics) May 20, 2020
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.