According to the data released on September 4 by CryptoQuant community manager, JA Maartun, on-chain data shows that a Bitcoin whale transferred 6,003.59 BTC ($117.6 million) from crypto exchange Binance in a single transaction.
Motivation for whale’s Bitcoin movement
Due to the anonymous nature of cryptocurrencies, determining the owner of the Bitcoin address in question is nearly difficult. However, given the current market circumstances, it is reasonable to conclude that the whale transferred the Bitcoin to a more secure cold wallet, signaling that the investor has no intention of selling in the foreseeable future.
In some cases, most significant holders prefer to have direct custody of their coins when holding them for a prolonged period of time, and outflows are often seen as a bullish sentiment.
Besides security reasons, some whales usually split their holdings over many cryptocurrency exchanges in order to maintain liquidity. Watching whales' selling and purchasing habits are sometimes thought to be a useful indicators of asset price movement.
Notably, these large transactions have been known to cause substantial fluctuation in Bitcoin's price.
Bitcoin whales criticism
Due to their power to influence pricing, whales have been chastised for centralizing Bitcoin and straying away from the goal of encouraging decentralized finance. Furthermore, crypto opponents have criticized Bitcoin's wealth disparity.
Surprisingly, in the aftermath of the latest crypto market crash, most investors appear to be 'HODLing' the commodity in anticipation of a probable rally. This is emphasized by a report released on September 1st, which found that 62% of Bitcoin holders have not sold the asset in over a year.
Meanwhile, Bitcoin remains below $20,000 after breaking over the mark in response to a solid US employment data. At the time of writing, the flagship cryptocurrency was trading at $19,750, dropped almost 0.68% in the last 24 hours.
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