Bitcoin withdrawals and deposits are often a good way to see how investors view a particular digital asset. Many products track bitcoin movement to and from exchanges. WhaleAlerts is one such bot. It tracks large transactions on multiple blockchains. Recently, large transactions showed that whales could be building up.
The Bitcoin Whales Work Hard
WhaleAlerts observed large transactions being made on Coinbase’s platform Friday. This transaction involved the sending out of BTC worth hundreds of millions dollars. In total, these transactions, which were less than ten, combined to move more than $1.3billion out of exchanges in the span of just one space.
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The BTC was sent to an unidentified wallet, which presumably went to cold wallet storage. A transaction alone entitles you to 9,901 BTC. The total amount of these coins at the moment of your move is $387 Million.
Source : BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Investors in this space followed these transactions as expected. Lark, a prominent crypto analyst noted these transactions on his Twitter page. Davis wrote in the caption that, while they may be just internal transactions (Coinbase shifting money around), it could also indicate that Coinbase is a new market participant, which could have major implications for the digital asset.
“3 transactions like this one happened a few hours ago on Coinbase. A total of over a billion #bitcoins were transferred off-exchange. It could be internal transfers. Could be a new mega entrant to the market,” Davis said.
Whales are accumulating wealth?
Whales are not known for their accumulation habits, particularly when bitcoin’s price has fallen. Even though Bitcoin beat it four times in a row this year, Bitcoin failed to surpass $40k. Investors looking for a way to make a profit on their digital assets will see this as an opportunity. The previous record was $69K.
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GlassnodeIt is also noted that all sizes of investors have been buying bitcoins on the market. This is because there are both supply and demand that equals holders. Holder conviction is therefore higher.
While trending below $39,000, the digital asset is showing support at $38,000. Bitcoin currently trades at $38,800, which seems to indicate a possible downtrend.
Featured image by PCMag. Chart by TradingView.com