The latest data provided by whale detectives reports that a cryptocurrency wallet holding $52,083,659 worth of Ethereum (ETH) recently transferred all its funds to the Binance exchange. As Cryptokoin.com reported, in the prominent whale transfers of February 1, Bitcoin (BTC) worth $ 33,668,820 was transferred to Binance from the Coinbase exchange. Let’s evaluate what the transactions mean for altcoin…
Why is massive altcoin transfer important?
Abnormally large transfers of cryptocurrencies from wallets to exchanges are typically interpreted as a bearish signal. Most high-net-worth cryptocurrency traders keep their funds in a hardware wallet because these devices offer better security than cryptocurrency exchanges. Hardware wallets store investors’ private keys offline and protect their cryptocurrencies from online attacks.
When whales transfer Ethereum to an exchange, it usually means they are looking for liquidity. Since the security risks of holding large amounts of cryptocurrencies on an exchange are higher than holding them in a hardware wallet, it is unlikely that the investor plans to hold their crypto on Binance. As a result, it can be expected that this Bitcoin whale plans to either sell Ethereum or exchange it for other altcoins.
Vitalik Buterin proposes an ETH-DOGE bridge
Ethereum co-founder Vitalik Buterin confirmed in a recent interview that he helped Dogecoin transition to PoS. According to Buterin, almost every major cryptocurrency now has plans to migrate to PoS. Additionally, Buterin advises the Dogecoin Foundation with Jared Birchall, who represents the legal and financial interests of Dogecoin inventor Billy Markus and Tesla CEO Elon Musk. The blockchain genius, who hopes that Dogecoin will transition to the PoS consensus method as soon as possible with the help of Ethereum technology, also proposes an ETH-DOGE bridge for Dogecoin, which he believes will speed up transactions.
Ethereum (ETH) price analysis
Ethereum is trading at $2,733.27, up 4% from last week. The largest altcoin project by market cap has been on the decline since its ATH of $4,891.70 on Nov. 16. The current level $2,800 zone was last tested in mid-September and ETH price is up 70% from this zone.
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