Cryptocurrencies are inherently volatile and are 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 have a value of approximately 80 million dollars.
Coinbase, a regular in bitcoin (BTC) whale transfers
The phenomenon of crypto whales continues to gain traction in the virtual currency industry. The whales here are actually very big players in the crypto market. These alone own large amounts of cryptocurrency. They can thus influence the market price through their transactions. To get there, they usually need to go through crypto platforms like Coinbase.
Despite this new transfer of 4,000 bitcoins, Coinbase is not at its first attempt. Indeed, in August 2021, the platform was already carrying out a similar operation. Either in all 3,001 bitcoins moved to unknown wallet, all worth $142 million. This other transfer is proof that whale transactions are on the rise, with billions of dollars moving from blockchains to wallets.
Moreover, this practice does not only concern bitcoin holders. A few days before, it’s 64,000 ETH that were transferred to an unknown wallet, for a value of 102 million dollars.
A whale transfer with no impact on market conditions
The news of recent days has been marked by crypto transfers from platforms to unknown wallets. Inevitably, this allowed bitcoin to experience a slight increase. However, we must not ignite, because market conditions continue to be strained. If we stay with the price of bitcoin, it is down almost 65% from its peak in November 2021. Yes, whale transfers like those from Coinbase are up, but overall the drop is felt. Average bitcoin transactions are seeing a sharp decline, as are active addresses and profitable supply.
The largest bitcoin holders alone have up to 14% of BTC in circulation. Since Tesla sold off a good chunk of its cryptocurrency holdings, the influence of institutional holders is less felt than in the past. For example, listed companies accumulate approximately 200,000 BTC. Which is insignificant compared to the millions of BTC tokens currently on the market.
Ultimately, the transfer from Coinbase to an unknown wallet adds to a long list of massive transactions. Large investors are asking crypto platforms a lot to transfer their assets to anonymous accounts. These transactions have allowed bitcoin to have positive notes in the last few days, even if the concern persists. Besides bitcoin, other altcoins like Ethereum are also heavily invested. Now, it remains to be seen whether this will finally put an end to the ever-extending bear market.
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