Absorbing Billions On A Weekend
The Bitcoin market just absorbed the sale of eighty thousand BTC on a weekend, and the market barely flinched. If this doesn't send a signal for how resilient the demand profile is, what will?
G’day Folks,
Remember those 80,000 ancient Bitcoin which transacted on 4-July, stirring up a load of speculation as to what was going on?
It turns out it was a good old fashioned sale.
Galaxy Digital helped this client complete the sale of these coins, and then issued a press release via an OP_RETURN output. They also appear to have dusted 1-sat UTXOs to the original addresses at the clients request, perhaps sending a clear ‘middle finger’ to the party who was trying to take ownership of the coins under that strange veil of a ‘legal process’.
Bitcoin can be a weird place at the best of times.
The Realised Cap remains undefeated in modelling the aggregate demand profile and capital flows in and out of Bitcoin.
Whilst everyone was debating whether it was, or was not a sale, The Realised Cap, Liveliness, and all other onchain metrics captured this event correctly, and we’ve now confirmed it has indeed correctly accounted for a fresh round of $9.6 Billion in capital flows.
It didn’t matter whether the coins were sold OTC, or via exchange, the ownership had to change, and that required several onchain transactions to complete it.
What is even more amazing, is this sale appears to have been executed over the weekend, and whilst the price dipped 3.5% to $115k initially, it has more than fully recovered in the hours since the event.
This my friends, is called a Dali Llama recovery, and is a regular, and well respected price pattern we see in Bitcoin bull markets.
Higher.
Today’s report is going to be an assessment of the underlying market response to this sell-side event, and provide my view on the resilience of the market support below us.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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