What is the reason for large Bitcoin transactions?
If you follow major news agencies and regularly receive news reports on the state of the digital market, then you have noticed recent changes. Literally in one day from unknown crypto platforms, unknown users displayed huge amounts. And, in fact, such an event is much more important than it might seem at first glance. That is why today we will analyze the recent market activity. Next, we highlight the causes and possible consequences of such significant market transactions. Read carefully, the material requires a responsible approach. So let’s get started.
What exactly is going on?
The so-called “whales”, that is, the owners of large amounts in the crypt, work very rarely. As a rule, such market players only accumulate cryptocurrency in order to have a serious impact on the entire industry. For such users in most cases there are entire companies interested in acquiring and accumulating funds. They do not trade, just buying up coins and putting them on hard drives. But today, several whales immediately began active work. About a day, about 17,320 Bitcoins were withdrawn from well-known exchanges. This amount, in dollar terms, is 169.4 million. Agree, rather big money. The Whale Alert analytical service, which constantly monitors market dynamics, noticed such significant withdrawals. First, a transfer from the Bitfinex exchange took place, unknown users withdrew about 5,000 Bitcoins. Then, Binance accounts were used, from which 3058 Bitcoins were withdrawn.
After that, two more transfers from the OKEx platform took place. For two transactions, users have withdrawn 2645 Bitcoins. And also on anonymous wallets. OKEx is generally used by many whales to store funds, so it is not surprising that 3164 bitcoins were later withdrawn from the exchange. Then the transfers went to Coinbase, from which 1593 coins were withdrawn. It is noteworthy that the purpose of transfers, as well as senders with recipients of funds, are unknown. There is a version that says that the same person is behind the transfers, who is trying to cash out the entire amount of savings. However, most likely, the translations are made by different whales. This is evidenced by the difference in transaction time. It’s much more important to understand what such transactions influence. Let’s discuss whether these translations will affect our work with you.
The consequences of major transactions
As you know, the cost of cryptocurrency is an extremely volatile parameter that can change even due to factors such as the arrival of a new player on the exchange. The appearance of a major user will certainly change the current trend. That is why the withdrawal of funds negatively affected the value of the crypto. The departure of a large number of tokens led to the fact that the first cryptocurrency lost about 2% of the cost in just a day. The redistribution of finances forces many users to begin rash operations with the currency. Fearing that major players are preparing for something serious, ordinary industry users are starting to sell coins. Excess funds hit the price. But do such experiences have real reasons?
In fact, the activity of the whales indicates the upcoming “bull rally”. This is what active trading is called, which can negatively affect the price and harm whale stocks. In the near future, the beginning of active sales and purchases of tokens is really forecasted, so get ready to trade. If you know how to manage funds – set aside part of the money in order to invest money on time. Otherwise, if you do not have time or desire to trade, you can act like big whales – withdraw your money until better times. Follow all the news of the crypto industry with us. We publish only high-quality and interesting material. Thank you for the attention. Good luck!