Bitcoin Selling Pressure Intensifies as Two Whales Deposit 9,500 BTC to Binance: LookOnChain
Highlights:
- Two wallets transferred 9,500 BTC worth $537M to Binance over the past week.
- These transfers led to drops in Bitcoin’s price.
- BTC whales’ actions mirror huge Bitcoin sales by Germany and the US governments.
Large BTC transfers from whales’ addresses to exchanges heighten Bitcoin selling pressure. Since June 27, two wallets have deposited 9,500 BTC on the Binance exchange. According to blockchain analytics firm Lookonchain, these transfers might indicate whales selling their Bitcoin holdings, currently valued at $537 million. When the transfers started last week, the holdings were valued at around $575 million.
Lookonchain analyzed the timing of transfers from each of the two wallets. They discovered a correlation between these transfers and addresses tagged as Binance deposit wallets by Arkham Intelligence. This correlation suggested that the subsequent declines in the price of Bitcoin were likely caused by the large sales associated with these transfers.
In addition to the #German Government, #US Government and #MtGox selling $BTC recently, whales are also selling $BTC!
2 whales have deposited 9,301 $BTC($563M) to #Binance since June 27, which also caused the $BTC price to fall.
Address:
1J22CPni1EsmT15A9qveydfWMoPMRw9Lp3… pic.twitter.com/fAH1FR86XD— Lookonchain (@lookonchain) July 5, 2024
Whale Moves 1,700 BTC to Binance On July 4
On Thursday, Whale Alert reported the transfer of approximately $3 billion in BTC across multiple transactions. Spot On Chain confirmed that one of these two whales moved 1,700 BTC in the latest transfer, valued at around $99.9 million, to Binance. Interestingly, this transfer coincided with Bitcoin’s price dropping to $57,000, causing concern among investors.
Note that this whale deposited 1,700 $BTC($99.92M) to #Binance again 20 minutes ago.
He deposited 3,500 $BTC($206M) to #Binance in just 5 hours!https://t.co/gq0KtAOQEZ pic.twitter.com/tTKWALqNak
— Lookonchain (@lookonchain) July 4, 2024
Following the transfer, the whale still held a balance of 4,368 BTC, valued at about $256 million at the time. More whale activities were observed last month. During a two-week period, these Bitcoin whales sold $1.2 billion worth of the coin through brokers and crypto exchanges.
Why is Bitcoin Down?
Bitcoin’s 20.20% decline over the past month shows ongoing selling pressure driven by macroeconomic factors, institutional withdrawals, government sales, creditor repayments, and market uncertainty.
Inflation data in the US indicated a slowdown, yet it wasn’t sufficient to prompt interest rate cuts from the Federal Reserve. The central bank continued its tight monetary policies, aiming for its 2% inflation target, thereby dampening risk appetite.
Following the halving, which cut block rewards by 50%, some miners sold millions in crypto to cover business expenses. This trend may have slowed down despite Bitcoin remaining below its peak of $73,000 in March and showing a sideways or downward trend since April. During the recent downturn, mining stocks also experienced significant losses.
Friday’s decline in Bitcoin was largely attributed to Mt. Gox repayments. The defunct crypto exchange started reimbursing users a decade after experiencing one of the largest BTC hacks in history.
Huge Bitcoin Selling by the German And US Government
As of early July, the German government has made multiple transfers to crypto exchanges. On Tuesday, Arkham Intelligence reported that the government transferred 832 Bitcoins, valued at $50 million. Additionally, 361.877 BTC, worth $22.65 million, was sent to market maker Flow Traders. These Bitcoin transfers were directed to Bitstamp, Coinbase, and Kraken. Moreover, the German government recently sent 547 Bitcoins to Flow Traders, worth $30 million.
On the other side, the United States government is also transferring significant Bitcoin holdings. Arkham Intelligence reported that a US government wallet moved 237 BTC to another address. These funds were seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, who were involved in a major crypto fraud scheme. Meanwhile, the German government has been selling Bitcoin much more frequently than the US.
The recent drop in Bitcoin’s price has affected investor sentiment and market liquidity, leading to a 57% increase in trading volume. According to the 10x Research report, the price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
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Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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