Recently, a significant amount of Bitcoin—valued at approximately $424 million—was transferred in three separate transactions. These movements were detected by Whale Alert, a service that monitors large cryptocurrency transactions. The transactions involved a total of 4,382 BTC and occurred between unknown wallets and exchanges. Specifically, two transactions of 1,875 BTC and 1,808 BTC were moved between unknown wallets, and another transaction of 699 BTC was transferred from the Kraken exchange to Bitfinex.
The exact reasons behind these large transfers are not clear. They could be internal movements by large holders, known as “whales,” preparing for potential market changes, or they might be over-the-counter (OTC) deals. OTC transactions are trades made directly between parties, often to avoid influencing the market price.
As of now, Bitcoin is trading below $100,000, with a recent price of $96,082, marking a 1.97% decrease in the last 24 hours. Previously, Bitcoin had surpassed the $100,000 mark, reaching a high of $100,235 following a mixed U.S. jobs report. However, the rally has since retreated as demand has cooled.
Analysts have observed that demand growth for Bitcoin has slowed since early December, which has coincided with a plateau in Bitcoin’s gains. This suggests that increased demand may be necessary to trigger Bitcoin’s next rally. Additionally, the seven-day average funding rate has declined since late January, indicating a decrease in demand for leveraged long positions. Without renewed leverage, price action may remain choppy or corrective.
While the recent large Bitcoin transactions have raised questions, their exact purpose remains unknown. The current market shows signs of slowing demand and reduced speculative activity, which could lead to continued price volatility.
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