Bitcoin immediately felt the impact of Wednesday’s Federal Reserve interest rate increase and failed to gain upward traction. Other macroeconomic variables also contributed to the decline of the world’s leading cryptocurrencies, including Ethereum and other significant cryptocurrencies.
Bitcoin lost its grip on the critical $19,000 handle following the U.S. central bank’s announcement. As of this writing, BTC is trading at $18,950, down 5.5% in the last seven days, data from Coingecko show.
As this situation evolved, a whale tracker observed many BTC accumulation transactions, indicating that whales are buying the dip.
Bitcoin Whales Quick To The Draw, 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.
The majority of BTC transfer transactions reported include more than 9,500 Bitcoin. However, the majority of whale trades occur on the Huobi cryptocurrency exchange.
A Bitcoin whale, often known as a “crypto whale” or just a “whale,” is a word used in the cryptocurrency community to refer to persons or organizations that hold huge quantities of cryptocurrency.
These “whales” are investors who own at least $10 million in Bitcoin and who send cryptocurrency from exchanges when they intend to hold their investments for a prolonged period of time.
Keeping huge sums of money on an exchange increases the danger of loss, as exchange wallets are the most desired target for cryptocurrency thieves.
Massive Crypto Transfers Are Often Bearish Signals
Over the previous several hours, more than 43,000 BTC have reportedly been transferred from the Huobi wallet on Binance, according to a report by Wu Blockchain. The overall outflow has been estimated to be approximately $820 million.
The cryptocurrency exchange Huobi has replied to these mega-transactions. It was suggested that the regular withdrawal behavior of users caused 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 these as internal text. The withdrawal operation of the user was responsible for initiating the text.
Transfers of cryptocurrency from wallets to exchanges are often a negative sign. When whales move crypto to an exchange, they are often in search of liquidity.
It seems unlikely that the investor intends to store their crypto on Coinbase, as the security concerns associated with storing large quantities of crypto on an exchange are greater than those associated with storing these assets in a hardware wallet.
It could be that that this Bitcoin whale intends to sell the crypto or trade 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