Twitter bot Whale Alert reported that 5,500 Bitcoin was moved from an unknown wallet to Binance, prompting fears that the transaction might lead to a significant drop in BTC price.
$33.8M Worth of BTC Moved from Unknown Wallet to Binance
On March 29, about $33.8 million worth of Bitcoin left an unknown wallet to reach Binance. The crypto exchange hasn’t confirmed yet that this was an internal move, which makes the crypto community think this might be another example of how institutional investors are dumping the cryptocurrency.
5,500 #BTC (33,856,623 USD) transferred from unknown wallet to #Binance
— Whale Alert (@whale_alert) March 29, 2020
Some commentators implied that a steep decline in the Bitcoin price coincided with the move, which proved that it was not about Binance about reshuffling its wallets.
Shortly after the transaction showed up on blockchain, the Bitcoin price dropped from about $6,150 to almost $5,900. Looking at the wallet transaction data, it shows that the 5,500 bitcoins have been ‘spent’ and sent to a number of other new wallet addresses.
Twitter commentators have already thrown out some brutal predictions about the Bitcoin’s support price, with figures ranging from $4,000 to as low as $1,000.
However, the price has rebounded and now trades above $6,300 as of 1:25 PM UTC.
Last week, Bitcoinist anticipated that the largest cryptocurrency by market cap could break below the $6,000 level after forming a double top, which is a bearish pattern in technical analysis.
Earlier today, Whale Alert tweeted that 50,343 BTC worth over $320 million moved from unknown wallet to unknown wallet. However, this transaction looks like an internal transfer, though we can’t confirm which crypto exchange is involved. What we know is that the receiving address has been conducting high volume transactions on a regular basis.
Are Institutional Investors Dumping Bitcoin?
Whether the BTC move reported by Whale Alert was an internal transfer or not, many institutional crypto investors have sold their Bitcoin holdings.
In fact, institutional investors were mostly responsible for the recent Bitcoin crash that saw the cryptocurrency losing over 20% in a single day, which was the biggest daily drop since October last year. The dramatic decline came amid a general panic caused by the coronavirus pandemic, which has hit most traditional assets.
Do you think the 5,500 BTC transactions was an internal transfer? Share your thoughts in the comments section!
Images via Shutterstock, BTC/USD charts by TradingView