Oh man say it isn't so!
Looks like false data reported on Glassnode may have caused today's BTC dip, just like it did last month.
Many here will already be somewhat familiar with on-chain data and intelligence platform Glassnode.com.
The platform appears to have again inadvertently caused the crypto market to dip as a result of reporting BTC exchange flow data that is incorrect.
I caught wind of this the first time it happened earlier in February when the same scenario led to a reversal in the area of 30%. The issue was described as a label issue internally at Gemini exchange which caused internal wallet transfers to be misinterpreted as new crypto enter the exchange.
This in tern caused a sell off that go on to liquidate leveraged positions on masse.
We can see here two massive spikes, last month and todays, indicating mass futures liquidations happened...again, and big time! On this chart which posted by WillyWoo (Founder of WooBull.copm) to Twitter the red dots are where the "false" influx of BTC was reported.
Damn you you Gemini fix your shit!
However not everyone agrees and CryptoQuant.com chimed in claiming this is NOT an internal transfer...huh?
They would go on to suggest it could in fact be one of three different things happening. Either a whale deposited BTC to a user account, a Gemini liquidity account was filled from another exchange, or an OTC deal.
They came to their conclusion by taking a closer look at the wallet types that were used in the transactions and determined it wasn't likely an internal transfer.
What is really goin on?
We have multiple on-chain analysts arguing over the cause of the data that was reported, this isn't good. Personally I'm leaning towards the data representing some form of BTC moving into a wallet for the purposes of being liquidated.
Both time this has happened BTC was essentially at an ATH, and we all know what that means... take profits!
If it wasn't for this I may more inclined to believe it was a simple internal transfer ..but no, not when they've both occurred along side an ATH.
Either way, we've seen this twice in the last month so I have a feeling we'll be seeing this again maybe even with our next ATH. Will definitely be watching.
Ciao for now,
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