Bitcoin exchange withdrawals and deposits can often be a way to gauge how investors are looking at a digital asset. This is why there are often products that track the movement of bitcoin in and out of exchanges. One of these is WhaleAlerts, a bot that tracks large transactions across various blockchains and recently, a number of large transactions have shown whales may be accumulating.
Bitcoin Whales Go Hard
On Friday, WhaleAlerts noted a number of large transactions that were being carried out on the Coinbase platform. These transactions consisted of hundreds of millions of dollars worth of BTC being sent out of the exchange. All of these transactions, less than ten in total, came out to a total of more than $1.3 billion being moved out of the exchange in the space of a single space.
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These BTC were sent to unidentified wallets, presumably to cold wallet storage. One transaction alone carried 9,901 BTC, and at the time of the move, the value of these coins came out to a total of $387 million.
BTC recovers north of $38k | Source: BTCUSD on TradingView.com
As expected, investors in the space were following these transactions closely. Lark Davis, a popular crypto analyst, noted these transactions on his Twitter page. Davis said in his caption that while these could just be internal transactions, meaning Coinbase moving money around, it could be a new entrant into the market, which would mean some significant implications for the digital asset.
“3 transactions like this one happened a few hours ago on Coinbase. Over a billion in #bitcoin moved off-exchange. Could be internal transfers. Could be a new mega entrant to the market,” Davis said.
Are Whales Accumulating?
It would not be the first time that whales have gone on an accumulation spree, especially when the price of the digital asset has been down. Bitcoin has failed to hold above the $40k level despite beating it four times this year alone. Naturally, this presents as a buying opportunity for investors looking to fill up their bags given that the digital asset had previously hit an all-time high of $69K.
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Glassnode also notes that investors of all wallet sizes have been accumulating their bitcoins in the market. Holder conviction is higher at this point with supply and demand being balanced.
The digital asset continues to trend below the $39,000 level, although showing significant support at $38,000. Bitcoin is trading at $38,800 at this time of this writing, with what looks like the beginnings of another downtrend.
Featured image from PCMag, chart from TradingView.com