Bitcoin stepped up on Jan 20 and is breaking the volume record for the past six days. The leading cryptocurrency once again reached over $43,000 after about 48 hours. Similar movements are observed in the majority of the altcoin market. In recent transactions reported by whale detectives, $20 million worth of Bitcoin was reportedly transferred to the Coinbase exchange for a possible sale. Experts put forward several scenarios.
Ten Million Bitcoin Transferred on Coinbase
An anonymous whale holding $20.5 million worth of Bitcoin has transferred most of its wallet to the Coinbase exchange. Transactions took place at the address named “38r1YP8hPME9hX4pG58QWoHLya6GsmPpNh”. Crypto transfers from wallets to exchanges are often interpreted as a bearish signal. Most high-capital traders keep their funds in hardware wallets because cold wallets offer better security than cryptocurrency exchanges. Hardware wallets store investors' private keys offline and protect cryptocurrencies from online attacks. According to experts, the whale makes these transfers for two reasons.
What does transfer mean?
When whales transfer Bitcoin to an exchange, it usually means they are looking for liquidity. Since the security risks of holding a large amount of cryptocurrencies on an exchange are higher than holding it in a hardware wallet, it is unlikely that the investor plans to keep their cryptocurrencies on Coinbase. It is thought that the Bitcoin whale plans to either sell Bitcoin or exchange it for other altcoins. Today, the 4th largest Ethereum whale has bought LINK, MATIC and FTT in large quantities. Huge wallets are moving their positions to Ethereum to avoid market corrections, according to whale detective WhaleStats.
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