On-chain analyst and market researcher Willy Woo says the recent price correction for bitcoin may have been caused by a billion-dollar whale transfer.
In a recent interview on What Bitcoin Did, Woo says falsely generated market concerns over a whale dumping $1.5 billion in bitcoin likely started a panic sell resulting in bitcoin’s price drop.
Woo spoke with Glassnode CTO Rafael Schultze-Kraft and confirmed that incorrectly interpreted market data gave the appearance that a bitcoin whale had moved $1.5 billion to the crypto exchange Gemini. The pair concluded the transaction was simply an internal transfer of the exchange’s funds.
Woo said:
I was trying to figure out this big sell-off. And, you know, the very peak of it started when there was a little alert that we had $1.5 billion that just moved onto the exchanges to sell… the assumption was to sell. And I think that spread amongst traders and we started to see the sell-off preempting that.
The popular analyst said the price correction “killed” bitcoin’s bullish momentum on its run to an all-time high of $58,000. He explained the market had plenty of room to move downward following the crash, noting the majority of crypto-assets were floating “high above the fundamental floor.”
Woo continued, saying the panic sale had been induced by “bad data.”
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