Massive Flow of Bitcoin to Exchanges Recorded While USDT Withdrawals Increase.
There has been a recent increase in Whale activity on the Bitcoin network. There is a concern that the move may not be all good as a massive inflow of Bitcoin and outflow of USDT to top exchanges have been recorded.
Data from whale transaction tracker Whale Alert shows an inflow of Bitcoin to exchanges while USDT is flowing out. In one of the transactions, almost 10,000 BTC were moved to Coinbase, one of the top crypto exchanges in the world.
? ? ? ? ? ? ? ? ? ? 9,800 #BTC (428,608,220 USD) transferred from unknown wallet to #Coinbasehttps://t.co/TJduZPSUfZ
— Whale Alert (@whale_alert) April 8, 2022
Similarly, millions of USDT have been taken out from Binance in a series of transactions. In one transaction, over 130 million USDT was taken out, while Two other transactions carried 125M and 126M USDT respectively out of Binance; all three transactions happened within 6 hours.
? ? ? ? ? ? ? ? ? ? 131,029,636 #USDT (131,029,636 USD) transferred from #Binance to unknown wallethttps://t.co/l3w0f1vCbk
— Whale Alert (@whale_alert) April 8, 2022
? ? ? ? ? ? ? ? ? ? 125,687,760 #USDT (125,687,760 USD) transferred from #Binance to unknown wallethttps://t.co/ohlypv7lcz
— Whale Alert (@whale_alert) April 8, 2022
? ? ? ? ? ? ? ? ? ? 126,424,044 #USDT (126,424,044 USD) transferred from #Binance to unknown wallethttps://t.co/ikNrRAViZl
— Whale Alert (@whale_alert) April 8, 2022
In total, 381M USDT was taken out of Binance.
What the flows mean
Typically, transferring Bitcoins, especially by whales, to exchanges is a bad sign as it signals a sell-off. The crypto community suspects this to be a panic sale, which is not typical of whales. Some crypto community members have expressed disappointment at this as they suspect the whales are planning to dump on them.
“I find it mildly comforting to know that these big fancy whale types are like the rest of us degenerates. FOMO is high; panic sells low. Welcome to the club, guys. Now here’s a thought. Maybe if you stop panic selling, so will the rest of us. I know, rocket science.” @TyrannusVex
@Thetarian11 said, “Ok, BTC is going on 20k after the conference.”
The outflow of USDT could also mean that Whales are not interested in buying and withdrawing USDT to safe wallets. It could indicate that the Whales are becoming bearish on the top cryptocurrency and expecting a correction.
How long will Bitcoin hold $43k
Bitcoin has held above $43,000 for the last few days following the rally to $48,000. If the transfer of Bitcoin to exchanges continues and the outflow of USDT, the price may not be able to hold for long as the selling pressure could make it break below that.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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