Major Bitcoin wallet holders transferred tens of millions of dollars’ worth of cryptocurrencies as the price momentum headed down.
Bitcoin whales displaced millions of dollars of crypto over the weekend after seeing the Bitcoin price plunge 10 percent in the sales wave last Friday.
According to Whale Alert, on-chain data tracking platform; The whales moved more than 6,000 Bitcoins (worth around $ 60 million) from Asian stock exchanges to Huobi and OKEx on September 5 alone. An additional 2 thousand BTC was added to the Bitcoins moved on September 6.
On September 5, 1175 and 1000 Bitcoins (with a total value of around $ 23 million) were transferred separately to the Maltese-based Binance, which is seen as the world’s largest stock exchange, and there was no major exit.
In addition to exchanges, up to 1,000 Bitcoins (about $ 10 million) were sent to an unknown wallet from Xapo, which stores user funds in a former Swiss army bunker and provides an institutional Bitcoin custody service. There was no major introduction to Xapo.
Why are whales moving Bitcoins?
These moves are not done because the whales want to sell their Bitcoins. As is known, exchanges and companies that provide custody services do not keep Bitcoins in their hot wallets for security reasons, according to market dynamics and demand, and move them.
“These movements are normal”
Wallet movements are not a single factor that will affect Bitcoin prices. On the subject, Jonathan Leong, the founder of the crypto currency exchange BTSE, said, “This is actually not an extraordinary thing, there is already a transfer between 2,000 and 3,000 BTC from unknown wallets to OKEx in a few days.”
“May cause FUD”
However, OKEx CEO Jay Ho said, “Tweet alerts like this can play a role in spreading the sales psychology that comes to the FUD, that is, thoughts of fear, uncertainty and doubt. Whale Alert tweets are now coming to be associated with the BTC drop, and they are unnecessarily pulling the market down. We don’t even know the real reason behind moving Bitcoins… ”he said.
Despite this comment, Jay Ho stated that unknowns are also one of the best parts of Bitcoin and said:
“No action can be prevented. Nobody can interfere with someone else’s transactions, and nobody can get in the way of someone who wants to lower the market. We have to accept such sales for financial sovereignty and freedom. In addition, in an environment where we do not want the intervention of central institutions, such unexpected and even large movements that do not come to our business should be regarded as normal.
On the other hand, it was noteworthy that the wallet movements came with the Bitcoin decline following the downward trend in the US stock markets. Bitcoin is generally seen as a safe haven against the financial markets, but this time the declines were followed by BTC.
On-chain analytics firm Santiment said in a tweet: “Global markets and the decline of gold continued with US stocks in red. Meanwhile, Bitcoin fell from $ 10,500 to $ 10,000 in just 80 minutes. “We expect an above-average correlation until pandemic fears are over in the world,” he said.