Saturday 03 September 2022 ▪ 3:00 pm ▪
min read – with
Cryptocurrencies are inherently volatile and based on the law of supply and demand. When the market is down for a long time, as it is now, some big investors take initiatives to shake things up. Generally, they decide to make transactions from a crypto platform to an anonymous wallet. On the night of September 1, Bitcoin Magazine announced the transfer of 4,000 bitcoins from Coinbase to an unknown wallet. This important transaction would be worth around 80 million dollars.
Coinbase whale transfers, regular in bitcoin (BTC).
The phenomenon of crypt whales The virtual currency industry continues to gain traction. Whales are very big players here in the crypto market. These alone own large sums of cryptocurrency. So they can influence the market price through their transactions. To get there, they usually have to go through crypto platforms like Coinbase.
Despite this a new transfer of 4,000 bitcoins, Coinbase is not on its first try. In fact, in August 2021, the platform was doing a similar operation. Either in all Moved 3,001 bitcoins to an unknown wallet, which are worth $142 million. This other move is proof that whale transactions are on the rise, with billions of dollars moving from blockchain to wallet.
Moreover, this practice only applies to bitcoin holders. A few days before, yes 64,000 ETH transferred to an unknown wallet, worth 102 million dollars.
A whale shift with no impact on market conditions
The news of the last few days has been marked by crypto transfers from platforms to unknown wallets. Undoubtedly, this allowed bitcoin to experience a small increase. However, we must not ignite, because market conditions remain pressure. If we stay with the price of bitcoin, it is down almost 65% from its peak in November 2021. Yes, there are whale transfers like transfers from Coinbase up, but overall the fall is felt. Medium-sized bitcoin transactions are in sharp decline, as are active addresses and profitable supply.
The largest bitcoin holders alone hold up to 14% of BTC in circulation. Since Tesla has sold a large portion of its cryptocurrency holdings, institutional holders have less influence than before. For example, listed companies accumulate around 200,000 BTC. Which is insignificant compared to the millions of BTC tokens currently on the market.
Ultimately, the move from Coinbase to an anonymous wallet adds to the long list of massive transactions. Big investors are asking a lot of crypto platforms to transfer their assets to anonymous accounts. These transactions have allowed bitcoin to have positive notes in the past few days, even if the anxiety continues. In addition to bitcoin, other altcoins like Ethereum are also heavily invested. Now, it remains to be seen whether this will end the ever-expanding bear market.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss any of the essential Cointribune!
A doctoral student in financial law and an experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.