Has the death knell just sounded for Bitcoin? A big investor recently decided to move his investment into Bitcoin. The crypto suffers the brunt of a great fall forward and further loses the confidence of its holders. It must be said that BTC does not manage to go up the slope with a “Sentiment” still very negative towards it.
As if to turn the knife around in the wound, the whale transferred an astronomical amount of tokens corresponding to 12,970 BTC. If the iconic token is in bad shape, other tokens like Ethereum or Tether are enjoying a well-deserved boost. Discover with us, the underside of this event and what it shows of the crypto market.
Over $245M worth of Bitcoin moved at once, what that means
According to the watchdog site, Whale Alert, a large amount of BTC tokens have been moved from an unknown wallet to another unknown wallet. And this transaction only cost the seller $22, as Blockchain.com found! During the sell-off, the price of BTC crashed before quickly recovering its pre-event price.
If one wants to draw conclusions from this, the whale in question is probably not looking for liquidity since it has not transferred its BTC to an exchange. However, such massive movements are very dangerous for the stability of the markets. They can indeed move prices significantly and lead to a bear run in less time than it takes to tell. To help you visualize the drop, here is a graph from CoinMarketCap that clearly shows the drop caused:
As we see on the graph. The transfer will have caused upheavals in the value of Bitcoin. On October 13, 2022, the token was trading at a price below $19,000. This descent could have been catastrophic without a slight bull run that ensued. BTC avoided drama with a massive token purchase. If the whale had caused a panic on the part of investors, its value could have fallen drastically by snowball effect.
Where did all those bitcoins go?
In reality, these BTCs did not leave the blockchain since they were transferred to another address. Moreover, the address of the recipient of these $245M finds itself directly propelled towards the place of the 66th largest holder of BTC in the world with a share of 0.068% of the total supply. We don’t have much information about the wallet that received the Bitcoins. It is possible that the issuer has transferred his BTC to a long-term hold portfolio or has made a payment to a third party. In short, it will be difficult to find out more about the situation.
Anyway, the BTC market will not have suffered too much. If you think BTC can go up and want to invest in it, it’s very simple. Do not hesitate to go to a crypto exchange platform to start investing in tokens. The crypto market is in crisis, and this can be a good opportunity to make profits when it recovers!
This event takes place in an already fragile context
According to the well-known site “Glassnode”, this exchange comes at the wrong time after the publication of a report on the fact that more and more BTC withdrawals are being made. They also highlighted the fact that the largest withdrawal in BTC had been made during this month since June. The Santiment company draws the same negative observation which shows that BTC is in the middle of a 48-month low regarding its exchanges in the crypto market. While BTC seems to have recovered quickly and is now trading at just over $19,000, its balance remains fragile.
Other Cryptos Show Bullish Signs
If BTC’s situation is looking good, other cryptos are on the rise. This is the case of Ethereum which shows us increases in the exchanges of its token. This bullish activity comes after the advent of The Merge which will have allowed Ethereum to reduce its energy consumption by more than 99% thanks to the PoS system.
Tether also got good press when it recently announced that it had zeroed out all of its commercial papers. To conclude, if the situation der BTC does not make you dream, the situation of the crypto market is not totally gloomy. Some projects are booming and attracting new investors.