Bitcoin dominance (BTC.D) reached its highest level since November 2021 last week and started taking the share of altcoins. The leading cryptocurrency is consolidating in the $39k region to reach the $40,000 support it lost on January 21. Recent data provided by on-chain trackers reported $33,668,820 worth of Bitcoin transfers from Coinbase to Binance exchange.
Anonymous wallet moved $33.6 million worth of Bitcoin from Coinbase to Binance
Bitcoin “Whales” (investors with $10 million or more in BTC) often transfer crypto between exchanges when seeking liquidity. If a whale sells all of its Bitcoins on a single exchange, it could have a high price impact. In other words, whales have the power to significantly lower the Bitcoin price on this exchange. Instead, they may choose to distribute funds between exchanges so that they have sufficient liquidity. Of course, it is not certain whether this Bitcoin wallet is transferring funds for sale. Another reason why giant wallets transfer Bitcoin between exchanges is security preferences.
One of the best ways to secure Bitcoin is to keep it in a hardware (cold) wallet. However, some exchanges like Coinbase keep investors’ funds for them in hardware wallets, adding an extra level of security for cryptocurrencies.
BTC dominance hits 2-month high
There are no signs of a bull in the crypto market yet, but altcoin giants like Ethereum and Solana have significantly snatched Bitcoin’s share in the last correction. The leading crypto is now making a comeback, increasing the 40% dominance to 42 levels in the second half of last month.