Crypto Whale Moves $576 Million worth of BTC

Crypto Whale Moves $576 Million worth of BTC

TL;DR Breakdown

  • Two anonymous wallets were involved in the transfer of over 17000 BTCs.
  • Glassnode reports that Bitcoin is facing a liquidity crisis.
  • Grayscale CEO says price corrections are normal for Bitcoin ecosystem.

Two unknown wallets were involved in a transaction involving over 17,000 BTCs. This was made known by a crypto whale which also said the transaction attracted just a meager charge.

The transaction, which is one of the largest in the history of the crypto industry, is over $570 million, while its transaction fee was just $9.72. This is one of the advantages crypto transactions hold over the traditional financial system. In a traditional financial system, transactions of this worth usually take more time and also always attract a higher transaction fee.

Bitcoin price has been hovering along the range of $33k to $38k this week; the asset had reached an all-time high of $42k on January 8. Presently the asset is trading for $33,502.

Bitcoin undergoing a liquidity crisis 

Glassnode has reported that the leading crypto asset is currently facing a rising liquidity crisis. According to the crypto analytics firm, the market sees transactions involving large amounts of BTCs being moved to cold wallets.

The report stated that over 270,000 BTCs had been moved in the last 30 days alone. And the transactions were being mostly carried out by long term holders.

Bitcoin price witnessing correction 

Bitcoin’s bull run appears to be on the decline as the crypto asset value has dropped below $32k for the first time since January 11. You will recall that the crypto industry saw a bull run that began in December last year and ran into this year’s early period. 

The decline in price of the asset wiped off over $100 billion from the crypto industry totally. The cause of this dip currently remains unknown.

Analysts have, however, said that the coin is undergoing a natural correction. Michael Sonnenshein of Grayscale was quoted to have said that price corrections are typical for the Bitcoin ecosystem. He added that all markets usually tend to witness this correction. 

Sonnenshein also noted that the crypto asset saw six price corrections in 2016 and 2017. All of these corrections happened right before the coin experienced a new high.

The price of Ethereum has also dipped by 10% within this same period. 

 

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