Bitcoin immediately felt the impact of the Federal Reserve’s interest rate hike on Wednesday and failed to gain traction. Other macroeconomic variables also contributed to the decline of major global cryptocurrencies, including Ethereum and other major cryptocurrencies.
Bitcoin lost its grip on the critical $19,000 handle following the announcement from the US central bank. As of this writing, BTC is trading at $18,950, down 5.5% in the past seven days, according to data from Coingecko.
As this situation evolved, a whale tracker observed numerous BTC accumulation transactions, indicating that whales are buying the dip.
Quick draw bitcoin whales, buy the dip
In the past 24 hours, more than 166,000 Bitcoins have been transferred from cryptocurrency exchanges to unknown wallets, according to Whale Alert. The total amount of all registered transactions exceeds $3.12 billion.
A cryptocurrency wallet containing $40,754,647 in BTC just sent the funds to Coinbase, while a Bitcoin whale moved $26,447,771 worth of Bitcoin away from the exchange.
The majority of reported BTC transfer transactions include over 9,500 Bitcoin. However, the majority of whale trading happens on the Huobi cryptocurrency exchange.
A Bitcoin whale, often known as a “crypto whale” or simply a “whale”, is a word used in the cryptocurrency community to refer to people or organizations that hold huge amounts of cryptocurrency.
These “whales” are investors who own at least $10 million in Bitcoin and send cryptocurrency from exchanges when they intend to hold their investments for an extended period.
Keeping huge sums of money on an exchange increases the risk of loss, as exchange wallets are the hottest target for cryptocurrency thieves.
Massive Crypto Transfers Are Often Bearish Signals
Over the past few hours, more than 43,000 BTC have reportedly been transferred from the Huobi Wallet to Binance, according to a report by Wu Blockchain. Overall cash outflows were estimated at around $820 million.
Cryptocurrency exchange Huobi responded to these mega-transactions. It has been suggested that users’ regular withdrawal behavior is causing the internal movement of funds.
Huobi also reported another Whale Alert transaction involving the transfer of 99,999,000,000 USDT to an unidentified wallet. designated as internal text. The user withdraw operation was responsible for initiating the text.
Cryptocurrency transfers from wallets to exchanges are often a negative sign. When whales move crypto to an exchange, they are often looking for liquidity.
It seems unlikely that the investor intends to store their crypto on Coinbase, as the security issues associated with storing large amounts of crypto on an exchange are greater than those associated with storing these assets in a hardware wallet. .
It could be that this bitcoin whale intends to sell the crypto or exchange it for alternative crypto assets.
BTC total market cap at $365 billion on the daily chart | Source: TradingView.com Featured image from CoinCentral, Chart: TradingView.com