bitcoin has seen its price suffer from the tremendous selling pressure that has filled the market over the past few weeks. However, while investors wait for relief, it appears that sellers are far from done, with one notable bitcoin sale transaction in particular sending the market into a frenzy.
Whale drops $1 billion worth of bitcoin
Whale tracker Whale Alert turned to x (formerly twitter) to x.com/whale_alert/status/1780819399789723859″ rel=”nofollow”>inform the crypto community of a large bitcoin transaction that was involved in the settlement. The transaction included a total of 16,276 btc, which was worth around $1 billion at the time the transaction took place.
While large trades are not out of the ordinary, their destination is often the determinant of whether it is a bearish or bullish trade. In cases where coins move away from centralized exchanges and into personal wallets, it can be bullish because this often means that investors are consolidating their coins in personal private storage and do not plan to sell them.
However, in cases where coins are transferred to centralized exchanges, it can be very bearish as it often means investors are looking to sell their coins. This was the case with the $1 billion bitcoin transaction, as all 16,276 btc were transferred to the Binance exchange.
Naturally, the transaction caused a stir among investors who contemplated the impact such a large liquidation could have on the price of the cryptocurrency. However, the origin of the transaction would be revealed soon after and prices would stabilize as a result.
Binance Says 16,276 btc Transaction Was a SAFU Fund Conversion
In the early hours of Thursday, Binance, the world's largest crypto exchange, took responsibility for the 16,276 btc transaction that was sent to the exchange. The funds reportedly came from his emergency insurance fund known as the Secure Asset Fund for Users (SAFU).
According to the advertisement, the exchange is converting this insurance fund into stablecoins to avoid fluctuations in the price associated with bitcoin. Binance explains that it maintains the balance of this fund at $1 billion, which represents a large level that is sufficient to safeguard user funds on the exchange.
As to why the exchange chose USDC as its preferred stablecoin, he said: “Using a trusted, audited and transparent stablecoin for SAFU further enhances its reliability and ensures that it remains stable at $1 billion.”
bitcoin has since been converted to USDC and SAFU wallet maintains a balance of 1 billion USDC.
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btc price stages another recovery | Source: BTCUSD on Tradingview.com
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