Bitcoin (BTC) fell below $ 33,000 for the first time in more than a week on January 21 as selling pressure intensified to reduce price action.
Coinbase Premium drops sharply
Data from Cointelegraph Markets and TradingView showed that BTC / USD continued its decline on Thursday, falling 7% on the day and failing to bounce off the $ 33,000 support.
The latest move, which saw bitcoin drop more than 13% from Tuesday’s event, came amid increased sales of Coinbase Pro, the professional trading sector on the US-based cryptocurrency exchange Coinbase.
As Cointelegraph reports, Coinbase Pro’s significant spike in sales in recent weeks has been accompanied by price fluctuations. This time, the drop happened in the so-called “Coinbase Premium”, which indicates that there is a sale – the difference in price between the BTC / USD pair instantly and other pairs suddenly fell.
Coinbase Premium Vs. BTC / USD chart. Source: Ki Young Jo
Ki Yong Jo, CEO of CryptoQuant’s chain analytics resource, summed it up on Twitter: “Looks like dollar BTC sellers came from #Coinbase. The Coinbase Premium Index was negative an hour ago. ”
Coinbase whales may want to drop $ BTC for consolidation. ”
Key highlighted a similar increase in inter-exchange whale deposits the previous day, indicating a potential willingness to trade or sell BTC at or below prices in the middle of the trading corridor between $ 30,000 and $ 40,000.
Another trend since Bitcoin began skyrocketing to consistent highs is the transfer of wealth from small investors to the whales, with the latter buying supply below each price correction.
Despite the sale, the headlines this week hit exactly about the buyers, and they were the head of investment giant Grayscale, which identified the largest Bitcoin purchase in a single day at over $ 600 million. In the 24 hours before the end of Wednesday, the company increased its balance by another 8,000 bitcoins – far more than the offer that mining brought to the market.
At a hypothetical conference call this week, CEO Michael Sonnenshin highlighted the state’s adoption of digital assets and increased interest from financial advisors as two of the main trends that should shape 2021.