Large Bitcoin movements involving exchange wallets are being seen at the blockchain level this Wednesday.
According to the analytical platform CryptoQuant, a few hours ago, two transactions for 7,901 BTC and 10,474 BTC were received in the wallets of the Bitfinex cryptocurrency exchange. The total cost of bitcoins transferred to the exchange per day was $ 1.2 billion.
It is usually impossible to determine for sure whether the assets were transferred from outside investors or whether the transactions were carried out by the exchange itself using unknown wallets, so any predictions remain at the level of guesswork. This applies both to the withdrawal of bitcoins, that is, the intended purchases, and to the deposit. However, in this case, Bitfinex CTO Paolo Ardoino confirmed that the transfers were not made by them.
Some nice #bitcoin inflow today in Finex.
— Paolo Ardoino (@paoloardoino) May 12, 2021
“The good bitcoin earnings are coming to Bitfinex today,” he wrote.
Also, several large transfers of 1,000 BTC or more were seen on the Binance and Bitfinex exchanges. According to ViewBase, along with this, the total exchange balance of bitcoins has grown by one and a half percent. Most of the assets were withdrawn from the exchanges in the USDT stablecoin – $ 125 million.
Several main reasons for such transfers are being considered. The most obvious one is a sale. At the same time, “whales” can move bitcoins only to create the appearance of impending sales, in order to provoke a depreciation and buy an asset at a better price, since in addition to transaction processing fees, it actually costs them nothing. Alternatively, bitcoins can be moved to be converted into altcoins, which have recently performed better than the first cryptocurrency.
Twitter account Unfolded notes that Bitcoin supply on OTC platforms has been declining throughout 2021. This week, the balance of bitcoins in well-known wallets on OTC platforms hit a low of 6,000 BTC.
The total balance held by the three OTC desks we track has continued to decline throughout 2021, reaching local lows of only 6k BTC this week.
This suggests demand by larger buyers exceeds available supply at these OTC desks.https://t.co/CgyvzJvDd9 pic.twitter.com/9FxtJMg4PI
— unfolded. (@cryptounfolded) May 12, 2021
“This suggests that demand from large investors for these platforms is outstripping supply,” analysts say.
According to a recent report from CoinShares, asset inflows to cryptocurrency funds have dropped $ 116 million over the past week to $ 373 million.Although the reading remains positive overall, CoinShares stresses:
“Some suppliers continue to see outflows. We see this as a sign of continuing profit-taking. ”
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