According to recent reports, a bitcoin whale just made a single transaction of $6,003.59 BTC (or $117.6 million) from the cryptocurrency exchange Binance.
This move alone was able to impact the cryptocurrency community, which is now wondering what was the motivation for getting read of $120 million worth of Bitcoin.
One possibility is that the whale could have moved the Bitcoin to a cold wallet during the down market, showing that the investor has no immediate plans to sell.
In addition to security concerns, some whales typically diversify their holdings across many cryptocurrency exchanges to maintain liquidity. Some experts believe that observing the purchasing and selling habits of whales might provide a reliable indication of an asset’s price trend.
Or, amidst the recurrent United States Federal Reserve policies that severely impact cryptocurrencies, the whale could simply have moved his investments to an asset that is currently not as risky as crypto.
Whale Sighting in Crypto
Amidst the current state of cryptocurrencies, popularly named “Crypto Winter”, one potential way to predict significant change in Bitcoin’s future is to pay attention to what the whales are doing.
The financial research institute Glassnode recently reported that, instead of holding, whales are actually buying the dips in Bitcoin, forcing the currency to bounce back from a resistance point.
Whales are actively increasing their balance, buying around 140,000 Bitcoin from exchanges each month.
Whale’s Influence on The Market
Currently, whales own up to 8.69 million BTC, or 45.6% of the total 21 million Bitcoin available worldwide.
Some investors protest against the influence of whales in the market.
Critics state that whales are deviating from the goal of fostering decentralized finance because of their capacity to manipulate pricing. Additionally, Bitcoin’s wealth inequality has drawn criticism from cryptocurrency skeptics.
With the continued collapse of the cryptocurrency market, the majority of investors have seemed to “HODL” the asset in expectation of a potential rally.