6,000 Bitcoins valued at over $120 million left Binance in a single transaction
In the midst of the current crypto winter, the market is searching for a number of signs that may influence the price of Bitcoin and other assets (BTC). The behaviour of Bitcoin whales in maintaining their holdings is one of the important indications observed.
According to data supplied by CryptoQuant community manager JA maartun on September 4, on-chain data suggests that a Bitcoin whale moved 6,003.59 BTC ($117.6 million) from crypto exchange Binance in a single transaction.
Due to the anonymity of cryptocurrencies, it is almost difficult to identify the owner of the questioned Bitcoin address. Despite the bearish market conditions, it may be inferred that the whale shifted the Bitcoin to a more safe cold wallet, suggesting that the investor has no plans to sell in the foreseeable future.
In many instances, the majority of significant holders prefer to have direct custody of their coins when they plan to retain them for a prolonged period of time, and the outflows are often considered positive sentiments.
In addition to security concerns, some whales divide their holdings over many crypto exchanges for liquidity purposes. Observing the selling and purchasing behaviours of whales is often seen as a reliable indication of the price movement of an item.
Notably, such substantial transactions have been known to create substantial Bitcoin price fluctuation. Due to their power to affect prices, whales have been criticized for centralizing Bitcoin, contrary to the goal of encouraging decentralized finance. In addition, Bitcoin’s wealth disparity has been criticized by crypto opponents.