Bitcoin's recent leap to $69,000 has prompted miners to release some of their older-generated rewards.

The recent price movement of Bitcoin Bitcoin (BTC) surpassed its previous high of $69,000 but then retreated to around $62,000 after this rapid increase, implying that the activities of early miners cashing out their older rewards may have contributed to the downward pressure on Bitcoin's value.

CryptoQuant analysts point out that on-chain metrics show that before Bitcoin reached its recent peaks and then fell, about 1,000 Bitcoins, worth nearly $69 million, were moved to exchanges from wallets that had been inactive for over ten years. The transfer of these long-dormant assets to platforms like Coinbase typically hints at an impending sell-off. Coinbase Given that the order book for exchanges typically displays 5 to 10 Bitcoins in liquidity for every $100 fluctuation, the potential sale of 1,000 Bitcoins could lead to a significant price drop. This concern is exacerbated when traders prepare to short Bitcoin right around its historic highs.

Analyst Bradley Park from CryptoQuant noted that the current influx of Bitcoin into exchanges mirrors the surge seen just before the dramatic 40% decline on March 12, 2020. That downturn was closely tied to the rise of the Covid-19 pandemic, which led to widespread lockdowns and induced many traders to seek more secure investments. Following that crisis, Bitcoin hit rock bottom at $3,850.

Miners certainly shouldn't have a bad day when Bitcoin hits an all-time high. It’s like bringing down the vibe at a celebration. Nobody likes that party crasher, miners.

The fluctuations in Bitcoin led to substantial liquidations of long positions across centralized exchanges, with losses totaling over $197 million. Of that, the majority—about $108 million—came from short positions, as data from CoinGlass reveals.

Looking at the broader context, over the past day, the entire cryptocurrency market has faced long-position liquidations exceeding $383 million, contributing to a staggering total of $678 million across major centralized exchanges. Liquidations happen when traders' positions are automatically closed because they can't cover their losses, which occurs when the market moves against their trades, depleting their initial margin or collateral.

In contrast, notable altcoins, such as Ethereum (ETH), are maintaining their upward trends with daily gains ranging from 2.5% to 3.5%. Meanwhile, Bitcoin, which is the leading digital asset by market cap, has seen a decline of over 2% in the last 24 hours, currently pegged at $67,245.

The recent volatility in Bitcoin prices illustrates the intricate balance of market dynamics, shedding light on both the strengths and the challenges within the constantly changing world of digital currencies. Solana (SOL) and Ethereum Please be aware that the information contained on this page should not be viewed as legal, tax, investment, or financial advice in any form. Always invest within your means and consult with a financial professional if you have any uncertainties. For additional guidance, we recommend checking the terms and conditions along with the help and support sections provided by the issuer or advertiser. MetaversePost strives to deliver accurate and unbiased reporting, but market situations can change rapidly without notice.

Alisa, a passionate journalist at MetaversePost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the vast universe of Web3. With her sharp insight into emerging trends and technologies, she provides thorough coverage to keep readers engaged and informed within the ever-shifting landscape of digital finance.