Bitcoin (BTC) whale activity has seen a spike recently, with deep-pocket addresses sending as much as 21,851 ($545 million) to exchanges in the past 48 hours. The development comes in the wake of the recent market-wide rally that saw BTC recapture the price of $26,000.
Whale tracking resource Whale Alert brought the recent spike in whale activity to public attention, highlighting seven transactions involved in the massive flow of exchange. In the latest transactions, an unknown address transferred 1000 BTC ($24.8 million) to Gate.io today at 2:39 am (UTC).
This transaction was preceded by another massive whale transfer involving the movement of 1,500 BTC ($37 million) to Binance yesterday at 10:18 pm (UTC).
🚨 🚨 1,500 #BTC (37,031,583 USD) transferred from unknown wallet to #Binancehttps://t.co/Ju9z5HJUDU
— Whale Alert (@whale_alert) March 14, 2023
Furthermore, behavioral analytics platform Santiment highlighted this dominance of whale trading in a report yesterday. According to the platform, BTC transactions involving at least $1 million of the asset have risen to their highest point since November 2022.
In the midst of this large number of whale transactions, CryptoQuant exchange reserve it has experienced a massive increase of late, reaching a current value of 2.17 million tokens. The last time this amount of BTC tokens was found on exchanges was in mid-January. Furthermore, the net flow of BTC exchange recently reached its highest value in 10 months, as revealed in a previous report.
Bitcoin’s break above $26,000
This behavior suggests further selling pressure as investors take advantage of the newly engineered market-wide rally to profit on their bitcoin investments. The asset recently hit a 9-month high of $26,386 before facing a mild correction.
The latest spike came on the heels of the recent US inflation report, which revealed that the inflation rate cooled to 6% in February, compared to the 6.4% rate seen in January. Notably, this marks the eighth time in a row that the inflation rate has experienced a decline from the peak of 9.1% in June 2022.
This indicates that the Federal Reserve’s struggle with inflation is moving into favorable territory and could influence a reduction in its aggressive interest rate hikes. Although BTC faced opposition above the $26,000 zone, the asset still held a 12% gain last week, trading at $24,471.
