Bitcoin Whales Buy $3.12 Billion in BTC in Last 24 Hours as Crypto Support Fed Ride
Bitcoin immediately felt the impact of Wednesday’s interest rate hike by the Federal Reserve and failed to rally. Other macroeconomic variables also contributed to the decline of the world’s leading cryptocurrencies, including Ethereum and other significant cryptocurrencies.
Bitcoin lost its grip on the critical $19,000 handle following the US Federal Reserve’s announcement. At the time of writing, BTC is trading at $18,950, down 5.5% in the past seven days, data from Coingecko shows.
As this situation developed, a whale tracker observed many BTC accumulation transactions, indicating that whales are buying dips.
Bitcoin Whales Quick To The Draw, Buy The Dip
In the past 24 hours, more than 166,000 Bitcoins have been transferred from cryptocurrency exchanges to unknown wallets, according to Whale Alert. The total amount of all registered transactions exceeds $3.12 billion.
A cryptocurrency wallet containing $40,754,647 in BTC just sent the funds to Coinbase, while a Bitcoin whale moved $26,447,771 worth of Bitcoin away from the exchange.
Most reported BTC transfer transactions include more than 9,500 Bitcoin. However, the majority of whale trades happen on the Huobi cryptocurrency exchange.
A Bitcoin whale, commonly known as a “crypto whale” or simply a “whale”, is a word used in the cryptocurrency community to refer to individuals or organizations that hold large amounts of cryptocurrency.
These “whales” are investors who own at least $10 million in Bitcoin and who send cryptocurrency from exchanges when they intend to hold their investments for a longer period of time.
Holding huge sums of money on an exchange increases the risk of loss, as exchange wallets are the most desired target for cryptocurrency thieves.
Massive crypto transfers are often bearish signals
In the past few hours, more than 43,000 BTC have reportedly been transferred from the Huobi wallet on Binance, according to a report from Wu Blockchain. The total outflow is estimated to be approximately $820 million.
Cryptocurrency exchange Huobi has responded to these mega-transactions. It was suggested that the habitual withdrawal behavior of users caused internal movement of funds.
Huobi also reported another Whale Alert transaction involving the transfer of 99,999,000,000 USDT to an unidentified wallet. designated these as internal text. The retract operation of the user was responsible for initiating the text.
Cryptocurrency transfers from wallets to exchanges are often a negative sign. When whales move crypto to an exchange, they are often looking for liquidity.
It seems unlikely that the investor intends to store their crypto on Coinbase, as the security concerns associated with storing large amounts of crypto on an exchange are greater than those associated with storing these assets in a hardware wallet.
It could be that this Bitcoin whale intends to sell the crypto or exchange it for alternative crypto assets.
BTC total market cap at $365 billion on the daily chart | Source: TradingView.com Featured image from CoinCentral, Chart: TradingView.com
