An intriguing development has caught the crypto community’s attention as a Bitcoin whale deposited a substantial amount of BTC on the world’s largest crypto exchange, Binance.
This significant move has sparked speculation about potential selling pressure and the subsequent impact on Bitcoin’s price. Notably, the massive deposit was recorded when Bitcoin showed signs of a rebound following its recent losses in the past week.
Whale Moves BTC To Binance
According to renowned on-chain analyst Lookonchain, a notable Bitcoin whale made a deposit of 1,750 BTC which is worth over $48 Million, on the Binance exchange a few hours ago. This occurrence has raised concerns among market observers, as large transactions can indicate imminent selling pressure.
The on-chain data analyst further reveals this whale has a history of triggering sudden moves in the price action. On April 21, the same individual deposited a staggering 5,791 BTC (equivalent to $163 million), leading to a subsequent 3% drop in Bitcoin’s price within five hours.
Notably, Lookonchain says this whale has a history of buying large amounts of Bitcoin. The analyst reports that the whale initially acquired 10,000 BTC, valued at $171 million, on December 1, 2022, when Bitcoin was priced at $17,101.
And as of now, the whale has a current Bitcoin holding balance of 2,459 BTC and an approximate profit of $107 million.
Bitcoin Reaction: Analyzing the Possibilities
It is worth noting that the Bitcoin market reaction to this whale can be quite unpredictable as the large investor alone might have a different reason to move the coins besides selling them. However, given the historical evidence of price movements following whale deposits on exchanges, Bitcoin will likely experience a spike in volatility soon.
Particularly, If the past is any indication, there is a possibility of a short-term dip in Bitcoin’s price if the whale sells its BTC deposit. The sudden influx of 1,750 BTC into the exchange may trigger a cascade of sell-offs from other market participants, leading to a temporary downturn.
Regardless, Bitcoin’s price has experienced a quick spike in the past 24 hours, up by 1%. Bitcoin has shown possible signs of rebound along with the rest of the crypto market. BTC has surged from low trading below $27,000 yesterday to trading for $27,406 at the time of writing.
Before the bullish signs, BTC has since been in a downward trend in the past weeks, down by more than 10% in the past month. Interestingly, BTC trading volume remains below $10 billion despite the whale movement.
Featured image from, Unsplash, Chart from TradingView