Cryptocurrencies are inherently volatile and are based on the law of supply and demand. When the market is bearish for a long period of time, as it is now, some big investors take initiatives to move things. Usually, 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 large transaction is said to be worth about $80 million.
Bitcoin, crypto, cryptocurrency, inflation
Coinbase bitcoin transfer to unknown wallet
Coinbase, a regular in bitcoin (BTC) whale transfers
The crypto whale phenomenon continues to gain traction in the virtual currency industry. The whales here are actually very important players in the crypto market. These have large amounts of cryptocurrencies in their possession on their own. They can thus influence the market price through their transactions. To do this, they usually need to go through crypto platforms like Coinbase.
Despite this new transfer of 4,000 bitcoins, Coinbase is not new to the game. Indeed, in August 2021, the platform already carried out a similar operation. That is a total of 3,001 bitcoins moved to an unknown wallet, all for a value of $142 million. This other transfer is proof that whale transactions are booming, with billions of dollars moved from blockchains to wallets.
Moreover, this practice does not only concern bitcoin holders. A few days before, it was 64,000 ETH that were transferred to an unknown wallet, worth $102 million.
A whale of a transfer with no impact on market conditions
The news of the last few days has been marked by crypto transfers from platforms to unknown wallets. Inevitably, this has allowed bitcoin to experience a slight increase. However, we should not get carried away, as market conditions continue to be tense. If we stay with the price of bitcoin, it is down nearly 65% from its November 2021 peak. Sure, whale transfers like Coinbase are up, but overall, the decline is being felt. Average bitcoin transactions are seeing a sharp decline, the same for active addresses and profitable supply.
The largest Bitcoin holders alone have up to 14% of the BTC in circulation. Since Tesla divested much of its cryptocurrency holdings, the influence of institutional holders is less felt than in the past. As an example, publicly traded companies accumulate roughly 200,000 BTC. This is insignificant compared to the millions of BTC tokens currently on the market.
Conclusion
Ultimately, the transfer from Coinbase to an unknown wallet adds up to a long list of large transactions. Large investors are heavily soliciting crypto platforms to transfer their assets to anonymous accounts. These transactions have helped bitcoin get positive marks in recent days, even though concern persists. In addition to bitcoin, other altcoins like Ethereum are also seeing big investments. Now, it remains to be seen if this will finally put an end to the ever-prolonging bear market.
Crypto Currency, its digital money.
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