The BTC whales moved thousands of coins during the latest weekend crash when the price momentum shifted downwards so let’s see more about the BTC coin news and analysis.
Crypto exchanges moved their holdings reportedly, not the investors as per the industry experts. The BTC whales moved thousands when the price crashed and correlated with the broader sell-off on the legacy markets. According to the data from the on-chain tracker Whale Alert, the whale wallets moved more than 6000 Bitcoin to Asian exchanges such as OKEx and Huobi following the 2000 BTC on September 6.
The Malta-based Binance exchange, one of the largest exchanges by daily trading volume, saw two large inflows of 1,175 BTC and 1000 BTC on September 5 with no outbound transfers according to Whale Alert. Apart from exchanges, the custodial service Xapo, claims to store the user’s funds in an ex-Swiss army bunker, saw one large outflow of more than 1000 BTC to an unknown wallet, and no inflows.
— Whale Alert (@whale_alert) September 4, 2020
The particular BTC whale’s movements were not happening due to the large investors and traders that sold off their BTC holdings. The crypto exchanges and custodial services don’t hold the users’ funds on their “hot wallets” and they moved them based on market dynamics and demand. Wallet movements don’t affect the price of the cryptocurrencies but the founder of BTSE Jonathan Leong said:
“It is nothing out of the ordinary, every few days there are in and out transfers of 2,000-3,000 BTC from unknown wallets to OKEx.”
On this matter, the OKEx CEO Jay Ho pointed out:
“Tweet alerts like this can also serve a role in spreading FUD. Since Whale Alert tweets have become synonymous with an incoming BTC dump when funds are moved to an exchange, they often serve to pull the market down unnecessarily since we don’t know the intention behind the BTC being moved.”
The anonymity is one of the best things about Bitcoin he argued:
“No one can stop a transaction from happening, no one can interfere with the movements of anyone else and no one can prevent anyone from dumping on the market if they wish. With the freedom of financial sovereignty, we have to accept some tradeoffs—and having no central actors interfering means that the market will inevitably make large moves and not always in the way we want it.”
1) 📊 $BTC's correlation to #gold is one many have noted over the past six months since Black Thursday. But the relationship between #crypto and $SPX is still evident as well, as seen in the @santimentfeed chart above. As the global markets and price of pic.twitter.com/v5ysQVe3pp
— Santiment (@santimentfeed) September 4, 2020
In the meantime, the wallet movements came as BTC followed a sell-off on the US equity markets which shunned the narrative of cryptocurrencies being a reliable hedge against the financial markets. Santiment commented on the matter:
“As the global markets and price of gold dumped as US stocks opened in the red today, Bitcoin dumped from $10,500 to $10,030 in the span of about 80 minutes on CoinbasePro.”
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