Sat 03 Sep 2022 ▪ 3 p.m. ▪
min read – by
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 major investors take initiatives to shake things up. In general, 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 be valued at approximately $80 million.
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 cryptocurrencies. This allows them to influence the market price through their transactions. To get there, they usually have to go through crypto platforms like Coinbase.
Despite this new transfer of 4,000 bitcoinsCoinbase is not on its first try. Indeed, in August 2021, the platform already performed a similar operation. Either in total 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 affect bitcoin holders. It’s a few days before 64,000 ETH transferred to an unknown wallet, worth $102 million.
A whale transfer with no impact on market conditions
The news of the past few days is all about crypto transfers from platforms to unknown wallets. This inevitably allowed bitcoin to experience a slight rise. However, we must not ignite, because market conditions remain stretched. Sticking to the price of bitcoin, it is down nearly 65% from its peak in November 2021. Yes, whale transfers like Coinbase’s are up, but overall the drop is palpable. Average bitcoin transactions are seeing a sharp drop, as are active addresses and profitable supply.
The largest bitcoin holders alone have up to 14% of BTC in circulation. Since Tesla sold a large portion of its cryptocurrency holdings, the influence of institutional holders has been less felt than in the past. For example, listed companies collect about 200,000 BTC. That 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 huge transactions. Major investors demand a lot from crypto platforms to transfer their assets to anonymous accounts. These transactions have allowed bitcoin to have positive notes in recent days, even if concerns persist. In addition to bitcoin, other altcoins such as Ethereum are also heavily invested. Now it remains to be seen whether this will finally put an end to the ever-expanding bear market.
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PhD student of financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Naturally, thanks to his articles, he joins the daily blockchain revolution for a better democratization of DeFi.