This week Tesla manager Elon Musk was responsible for one of the biggest drops in the price of Bitcoin in history. The asset, which during the week was close to 60 thousand dollars, reached 45 thousand during the peak of the panic. Let's try to understand what happened with the data provided by the analyst William Clemente.

Interestingly, moments before the tweet and the big crash that followed, 19,259 Bitcoin were moved into exchanges. Something that would hardly be a coincidence. Most likely it was someone with insider information.

Right after Elon's tweet about Bitcoin's use of non-renewable energy, he started a cascade of liquidations from leveraged investors, totaling $ 208 million settled over a 10-minute period. This cascade of sales is the reason why the price went down to $ 46,000 so aggressively.

After the flow of Bitcoin deposits at brokerages increased before the tweet, we can see a large flow of Bitcoin withdrawals. This data strengthens the idea that one or more players had inside information and used it to dramatically increase their Bitcoin positions.

Still speaking of withdrawals, one of the highest levels of exchange outflows since the beginning of this year occurred in the midst of panic. OTC outflows, used by players who trade large amounts, also increased during the fall. Most likely, large players and institutional investors took advantage of the opportunity to increase their positions.

Approximately $ 460,000,000 of Tether was printed after the fall. In the chart below we see the net transfer volume, more than $ 650,000,000 of Tether was transferred to exchanges on Thursday. This does not always mean instant purchases, but it does signal that capital is on exchanges waiting to be used.

Trying to look on the bright side of all that happened, we see that leveraged traders are being liquidated. About $ 1.8 billion of open futures contracts were liquidated. This is always healthy for the market, as the price is influenced by organic purchases and not by speculating investors.

Miners do not appear to have been affected by the fall in short-term prices and continue to accumulate as they believe that the price of Bitcoin is not at the top. This metric has remained positive for over a month.

Portfolios that have a history of being long-term investors and usually sell at the top, also continued to accumulate steadily throughout this consolidation and have been doing that for more than a month. Needless to say they were unaffected by this week's panic.

To conclude, Wednesday's event was terrible for Bitcoin's price in the short term and undoubtedly a shock to the market, but it does not change the long-term fundamentals of the currency in any way. Protection against inflation, high liquidity and the asset's versatility remain great reasons to continue accumulating and holding with steady hands.