From Coinbase, one of the biggest players in the cryptocurrency market, large investors, so-called whales, withdrew over $1 billion in Bitcoin. The move caused speculation in the crypto community and financial markets.
Why is it important?
The withdrawal of such a large amount of Bitcoin from a major exchange platform like Coinbase potentially points to several scenarios and outcomes. The meaning and implications of this situation are being debated among investors, analysts and crypto enthusiasts.
Why did the whales carry it?
The amount of Bitcoin on Coinbase, the largest crypto trading platform in the US, fell to its lowest level since 2017 as whales started moving their money to their own wallets.
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According to CryptoQuant data, whales holding large amounts of Bitcoin have withdrawn over $1 billion worth of cryptocurrencies from the platform in recent weeks, removing more than 18,000 BTC from the exchange.
According to well-known cryptocurrency analyst Ali Martinez, the move signals increased buying activity by whales. In just ten days, whales bought more than 100,000 BTC with a total value of more than $5 billion.
#Bitcoin whales have purchased over 100,000 $BTC in the last ten days, worth around $5 billion! pic.twitter.com/JNWvSRll80
— Ali (@ali_charts) February 15, 2024
Coinbase’s current order簿には約は約394,000 BTC, which is estimated to be worth $20.5 billion.
Whales moving their Bitcoins away from centralized exchanges is generally considered a positive signal as fewer Bitcoins are available for sale in the market. However, some on social media, such as X, have different views on the nature of the transactions.
Some believe that assets are being transferred to custodial wallets in preparation for a price spike due to the upcoming Bitcoin halving, leading to a supply shock. Others believe that the withdrawn coins could be used to provide liquidity for over-the-counter (OTC) transactions.
What Will the Future Bring?
The impact of the whales’ move on the Bitcoin market is not yet clear. However, the move has increased speculation about the future of the cryptocurrency. It’s worth keeping a close eye on market developments in the coming days.
Bitcoin Whales are Moving, Halving is Approaching: Where Is BTC Price Going?
The price of Bitcoin (BTC) has appreciated by almost 100% in the last six months due to the excitement around the launch of spot Bitcoin exchange-traded funds (ETFs) in the US and the demand for the cryptocurrency that these funds have generated. According to BitMEX Research, these ETFs have seen net inflows totaling more than $4.5 billion since their inception.
The Impact of Whales on the Rise:
The demand for BTC is clearly visible. Whales have accumulated Bitcoin, participating in the highest level of activity seen in almost two years. In 2024, notable investors with 1,000 to 10,000 BTC in their wallets amassed nearly $13 billion from the asset. On the other hand, people with 100 to 1,000 BTC reduced their holdings by $7.89 billion.
It remains unclear whether BTC addresses of spot Bitcoin ETFs are included in the data. However, it does suggest that pressure on Bitcoin supply is increasing ahead of the halving event scheduled to take place in April. The halving will halve the coinbase reward that miners receive for finding blocks.
😮 Independent from the impressive volume happening with #Bitcoin #ETF's, there has been a distinct flip in the level of $BTC's supply being held by different sized wallets:
🐳 1K-10K $BTC wallets: $12.95B added in 2024
🐋 100-1K $BTC wallets: $7.89B dropped in 2024(Cont) 👇 pic.twitter.com/BL7Mrj6kLq
— Santiment (@santimentfeed) February 16, 2024
Anthony Scaramucci, founder of SkyBridge Capital, continued his prediction of a massive price increase for the cryptocurrency, stating that multiplying Bitcoin’s price at halving by four predicts where Bitcoin’s price could go in that cycle. This logic leads him to think that the $170,000 price prediction is conservative, given the current market trend.
Currently, about 900 BTC are mined daily, while Grayscale reports daily outflows of about $100 million, while Bitcoin ETFs have a daily net inflow of about half a billion dollars, or about 9,650 BTC.
After the halving in April, the daily number of BTC created will drop to around 450 BTC and institutional demand will continue to increase. This massive supply-demand imbalance has historically been positive for the Bitcoin price, with new all-time highs occurring within a year of the halving.
Conclusion:
The price of Bitcoin has experienced a significant rise recently and the market is waiting with bated breath. Factors such as the movements of whales, institutional investment and the upcoming halving could significantly affect the Bitcoin price in the coming period.
