Bitcoin price reached a historic milestone on March 5, soaring to an all-time high of $69,000. However, this achievement was short-lived as the price quickly experienced a flash crash, briefly dropping below $60,000. The crash was attributed to a significant amount of selling from hodlers, as numerous whales and dormant accounts emerged to capitalize on their profits.
Data from CryptoQuant revealed that crypto exchanges witnessed a three-day streak of Bitcoin inflows totaling $525 million. This indicated that traders were moving their Bitcoin from cold storage onto exchanges in order to take advantage of the ATH and secure their profits.
One particular case caught the attention of the crypto community. After remaining dormant for 14 years, a whale suddenly awakened and deposited 1,000 BTC (equivalent to $67.1 million) into Coinbase when the Bitcoin price was trading at $67,116. The whale had mined these Bitcoins back in 2010 when the price was below $0.28, indicating that they had made a profit of over $60 million.
While Bitcoin hodlers were able to profit from their holdings, leverage traders were not as fortunate. The volatile price movements resulted in over $1 billion worth of leveraged positions being liquidated, marking the largest liquidation day since the previous cycle’s peak.
The Bitcoin binary spending indicator also revealed that many hodlers made a profit when the BTC price reached $69,000. This indicator tracks the movement of Bitcoin funds over time based on their supply timeline.
Coinbase also experienced its highest selling volume on a daily candle since the FTX crash, indicating significant selling pressure in the market.
Despite the recent selling and flash crash, not all Bitcoin holders are eager to sell. According to CryptoQuant, 45% of Bitcoin has remained untouched for over three years, while 11% has not been moved for five to seven years.
Crypto analysts viewed the recent flash crash as a healthy correction for the market. It helped eliminate high volatility and reset the high funding rates, which represent the difference between the futures and spot markets. High funding rates suggest an over-optimistic market dominated by long traders.
Within 24 hours, Bitcoin’s price managed to recover above $66,000, approaching its all-time high by only 4%.
In a recent interview, the Wolf Of All Streets expressed concerns about a future where Bitcoin reaches $1 million, adding to the ongoing discussions surrounding the potential impact of such a scenario.