Bitcoin Whale Moves $424M in Hours: A Closer Look

Generated by AI AgentCoin World
Saturday, Feb 8, 2025 1:28 pm ET1min read
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Bitcoin Whale Moves $424 Million in Hours: A Closer Look

In a significant development, blockchain data tracker Whale Alert recently reported a substantial movement of $424 million worth of Bitcoin (BTC) across three separate transactions within the last 24 hours. The transactions involved a total of 4,382 BTC being transferred between unknown wallets and exchanges.

The transactions included two transfers of 1,875 BTC and 1,808 BTC, worth approximately $180.8 million and $176.4 million respectively, between unknown wallets. Additionally, a transfer of 699 BTC, valued at around $68.8 million, was made from Kraken to Bitfinex.

The specific purpose behind these transactions remains unclear. However, several probable explanations exist. Large holders, or whales, may be shifting their assets in anticipation of market movements. Transactions involving unknown wallets could be internal movements between whale wallets or over-the-counter (OTC) deals.

Bitcoin's price action has been relatively stagnant, with the cryptocurrency trading below $100,000. At the time of writing, Bitcoin was down 1.97% in the last 24 hours, trading at around $96,082.

Bitcoin briefly broke above $100,000 on Friday, reaching highs of $100,235 following a mixed U.S. jobs report. The cryptocurrency, along with other cryptocurrencies and U.S. equities, surged last year due to the Fed's decision to lower borrowing costs. However, the rally has since retreated as demand cools.

CryptoQuant's head of research, Julio Moreno, noted that demand growth has slowed since early December, as have Bitcoin's gains. This suggests that demand growth might be needed to trigger Bitcoin's next rally.

According to Glassnode, the seven-day average funding rate has declined since late January, now at 0.004%. This is 85% lower than the December peak of 0.026%. This implies that demand for leveraged longs is fading as speculative appetite weakens. Without renewed leverage, price action may stay choppy or corrective.