Whales are some of the most relevant entities in the bitcoin market due to their potential influence on the price of bitcoin through high-volume transactions. Investors and traders often keep an eye out for whale transactions, which can trigger a domino effect in the market.
In one such development, recent on-chain data revealed that one particular whale woke up from a three-year slumber and moved its btc for the first time since 2020.
Whale becomes active for the first time in three years
According data from blockchain analysis platform Arkham IntelligenceOne bitcoin whale in particular became active after years of inactivity and transferred 5,000 btc (worth around $137 million) on Saturday, October 7.
The whale address initially received the 5,000 btc from the poolin mining pool on June 23, 2020. At that time, the price of bitcoin was around $9,700, bringing the total transaction value to approximately $48, 5 million.
The price of bitcoin has seen significant growth since 2020, with btc trading for $27,903 at the time of writing. Consequently, the whale management’s holdings had risen to approximately $137 million when the 5,000 btc was moved on Saturday.
The on-chain data shows that this whale split and transferred the 5,000 to two separate addresses. About 4,000 btc were transferred to one address and 1,000 btc to the other address, both new and unmarked.
A threat to the price of bitcoin?
This latest action by the whales seems to be causing a sense of caution in the bitcoin market. This is not a surprise, considering that the movement of a large amount of btc (especially a liquidation) often sparks interest or fear in other investors, leading to momentary price fluctuations.
However, it is worth noting that the reason for this whale transfer is currently unknown. It remains to be seen if the owner wants to sell or simply move his assets to another wallet.
If the whale intends to sell all of its btc holdings, then this latest action could potentially threaten the price of bitcoin. Large-scale sales could negatively affect the value of bitcoin as they often put downward pressure on the cryptocurrency and could trigger a temporary price drop.
It is worth mentioning that the price of bitcoin has not experienced significant or abrupt changes in the last 24 hours. According to data from CoinGecko, the value of btc fell by 0.1% in the last day.
bitcoin has had a relatively healthy start to October, with the leading cryptocurrency recording a 3.3% price increase since the beginning of the month. btc price has been moving mostly sideways in recent days as it appears to surpass the $28,000 mark.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/10/Is-Bitcoin-price-at-risk-Whale-transfers-137-million-in" alt="bitcoin price” width=”2108″ height=”1442″ loading=”lazy”/>
bitcoin price hovering around $28,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
