According to Whalemap, 32,000 Bitcoin (BTC) moved for the first time, after laying dormant since the last bear market of 2018. The movement is another sign that current BTC prices are affecting long-term holders.
Although the reason for the movement is not known, it may be speculated that the whale in question might be booking its profits. Another reason could be the rising dollar. Of late, the US Dollar has become a lucrative investment in a risk-averse ecosystem. There is also the possibility that the whale has lost considerable confidence in Bitcoin. However, none of these reasons can be proven, and remain purely speculative.
However, Whalemap, has an alternate narrative regarding the coin’s movement. The Twitter handle argued that major investors might be capitulating at the lows. The user noted that such transactions often “signify OTC trades.” This means that someone else was willing to acquire the 32K Bitcoins at current prices.
Nonetheless, the whale made big on its investment. 32,000 BTC in 2018 lows amounts to around $124 million, with $3,900 per Bitcoin. At sale time, the coins were worth a whopping $612 million.
Demand for Bitcoin still high?
Coins moving from cold wallets into exchanges are usually not a good sign. However, the 32k BTC was met with equal demand, which on the other hand is a positive sign.
Furthermore, yesterday also saw a record number of BTC leaving exchanges. According to analysis firm Santiment, 40,572 BTC were taken off exchanges. BTC supply on exchanges is down by 8.48%. The analysis firm noted that “as exchange supply decreases, it de-risks chances of future sell-off.”
However, the lack of BTC’s circulating supply on exchanges does not inspire a fresh inflow of funds.
2022 has so far been one of the worst years for the crypto industry. Bitcoin, the original cryptocurrency, had its worst quarter ever this year. At press time, BTC was trading at $19,162.06, down by 0.5% in the last 24 hours.