Bitcoin survived a surprising sell-off yesterday after a mysterious entity moved 40 BTC from an address that had been inactive for more than ten years.
Twitter account “Whale Alert” first predicted that the Bitcoin wallet probably belonged to Satoshi Nakamoto, who has 1.1 million BTC.
What you need to know: A bitcoin whale is used to refer to individuals, or institutions, that hold large amounts of bitcoins. According to data obtained from Coinmarketcap, bitcoin is presently trading at $9500 with a market capitalization of $174.6 billion. Bitcoin dropped after failing to pass above its price level resistance near $10,000. The pullback bias could increase.
Satoshi Nakamoto, Bitcoin’s creator, might be a bearish ‘ghost’, according to events that took place in the crypto market on Wednesday.
BTC was eyeing retest of a technical resistance level at $10,000 while trading some $200 below it before – almost suddenly – traders sold off near $9,800 after Twitter user Whale Alert tweeted about an old Bitcoin address becoming active.
In addition, the $500 plunge that occurred yesterday uncovered one of the biggest concerns lying beneath an otherwise bullish Bitcoin market.
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Data aggregation portal Messari wrote in its letter to clients today about “anxiety” among crypto traders and investors over Nakamoto’s treasure.
“Satoshi is estimated to have over 1.1 million coins, and there is the fear (albeit overblown) that those coins could be market dumped on an exchange, which would tank Bitcoin’s price,” the letter read.