Bitcoin’s Drop Under $8K Was Caused By A $1.2B Transfer, Says Data Monitoring Firm

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A few days ago and in a surprising turn of events, Bitcoin shockingly fell under $8,000, for the first time since June. Byte Tree, a data monitoring service, has now offered an explanation for the mysterious dip in prices. According to the firm, the dip was caused by a sell order which saw the transfer of $1.2 billion from a private wallet to an exchange.

The large sale seemed to trigger panic selling which further caused the king coin to drop in value. It is said that the Bitcoin transferred was most likely eventually sold. According to Byte Tree officials:

“Gradual build-up of sells, minimal buys [and] Big on-chain movement of $1.2 bn at 3pm BST correlates to accelerating fall in price (as the order book is eaten up).”

As we reported yesterday, Bitcoin’s hashrate recently fell by 40% and dropped from 98,000,000 TH/S all the way down to 57,700,000 TH/S, triggering rumours that the general security and stability of the Bitcoin network might be suffering. However, new opinions have come in to disprove doubts about the network’s strength.

CoinShares’ Head of Research, Christopher Bendiksen has offered that:

“If you look at the popular hashrate estimate graphs, you’ll notice that they spike hard both up and down. This doesn’t mean that the hashrate is rapidly growing or falling. It is simply a relic of the inherent variance in PoW mining.”

The general consensus among people who don’t believe that the network is failing, is that it’s very possible for hashrates to rise and drop, depending on the time it takes for a block to be produced. It does not mean that there is an occurrence of miners exiting the space.

Image Credits: Pixabay

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