6000 Bitcoins Worth Approximately $120 Million Inflows From Binance In One Transaction

Amid the ongoing crypto winter, the market is looking for several indicators that can influence the prices of assets such as Bitcoin (BTC). One of the main indicators that is being watched is the actions of Bitcoin voters in managing their holdings.

In this case, on-chain data indicates that a Bitcoin whale transferred 6,003.59 BTC ($117.6 million) from crypto exchange Binance in a single transaction, the data shared by CryptoQuant community manager JA_Maartun On September 4 Indicates.

Bitcoin exchange outflows from Binance. Source: CryptoQuant

Motivation for the movement of Bitcoin whale

Due to the anonymous nature of cryptocurrencies, it is almost impossible to determine the owner of the Bitcoin address in question. However, amid market pressures, it can be assumed that the election moved Bitcoin to a more secure cold wallet, indicating that the investor has no intention of selling in the near future.

In some cases, most large holders prefer to have direct custody of their coins when they intend to hold them for a longer period of time, and outflows are generally considered to represent bullish sentiment.

In addition to security reasons, some whales tend to distribute their holdings on different crypto exchanges to gain liquidity. Sometimes looking at buying and selling patterns of whales is a good indicator of an asset’s price movement.

In particular, such significant transactions are known to cause significant volatility in the price of Bitcoin.

Bitcoin faces criticism

Given their ability to influence prices, whales have been criticized for centralizing Bitcoin, and moving away from the goal of promoting decentralized finance. In addition, the wealth inequality in bitcoin has drawn criticism from cryptocurrency critics.

Interestingly, in the wake of the ongoing crash in the cryptocurrency market, most investors appeared to be “HODL” the asset in anticipation of a possible rally. This was highlighted by a Coinphony report released on September 1, where 62% of Bitcoin holders had not sold the asset in over a year.

Meanwhile, Bitcoin continues to struggle below $20,000 after breaking the level in the wake of the positive US jobs report. At press time, the major cryptocurrency is trading at $19,600, down nearly 1% in the past 24 hours.

The outflow of 6000 Bitcoin worth approximately $120 million from Binance in a single transaction appeared first on Coinphony.

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