On-chain data for the day showed that 6,000 Bitcoins worth $120 million were left from Binance in a single transaction.
What does massive Bitcoin transfer mean
The market is looking for signals that will have an impact on Bitcoin price amid the current crypto winter. However, the way Bitcoin whales manage their capital is one of the key indicators to watch. Recent data provided by CryptoQuant community manager JA Maartun, on-chain data shows that a Bitcoin whale transferred $117.6 million worth of Bitcoin from cryptocurrency exchange Binance in a single transaction. The whale moved about 6,003.59 BTC.
Why did the whale choose to do such a procedure?
Because cryptocurrencies are anonymous, it is nearly impossible to determine who owns the Bitcoin address in question. However, we can assume that the whale placed Bitcoin in a more secure cold wallet during the market crash. It also appears that the investor has no plans to sell immediately.
On the other hand, in addition to security concerns, some whales often diversify their holdings on many cryptocurrency exchanges to maintain liquidity. Some experts believe that observing the buying and selling habits of whales can be a reliable indicator of an asset’s price trend. In particular, such significant transactions have a history of making the Bitcoin price extremely volatile.
Whales manipulate the market
Whales have been at the center of criticism for their capacity to centralize Bitcoin and manipulate pricing. Additionally, Bitcoin’s wealth inequality has drawn criticism from cryptocurrency skeptics. Interestingly, with the continued collapse of the cryptocurrency market, most investors continue to “HODL” in anticipation of a potential rally. A study published on September 1 showed that 62% of Bitcoin investors have not sold in more than a year.
Meanwhile, Bitcoin is still below $20,000 even after a positive US jobs report. BTC is currently trading at $19,895.28, holding steady in 24 hours. As you follow on Kriptokoin.com, it has lost around 3% since last week.
Bitcoin price predictions
Popular crypto analyst Michaël van de Poppe shared his expectations for a correction in the near future. The analyst said on September 4 that he thinks Bitcoin will see a correction in the coming weeks without rallying again. Specifically, Poppe says that Bitcoin’s next possible higher target is $28,000 or $30,000. However, he noted that it could drop as low as $19,300 with it.
The analyst noted that while BTC is stuck in the $19,000-$21,000 range, the situation could result in ‘liquidity grabs’ below the level. He suggested that to continue any rally, Bitcoin would need to cross $20,400 and target $21,500.
16882
