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Bitcoin Sell-Off Incoming: Bitcoin Whales Return to Major Crypto Exchanges

Lucas Cacioli   Jan 04, 2021 09:45 2 Min Read


   

CryptoQuant Alert warns that Bitcoin whales are moving huge quantities of BTC onto major crypto exchanges indicating a huge sell-off could be imminent.

The Bitcoin price is falling from its 24 Hour high of $34,550 down 6.6% to $31,886—on-chain analysts have sent out a warning indicating the BTC whales plan to take advantage of the booming Bitcoin price.

A sell-off of this magnitude could send the Bitcoin price, which is currently consolidating around the $32,000 level, further down in the short-term.

CryptoQuant CEO Ki Young Ju sent out the whale warning on Twitter:

“And 3,001 $BTC just deposited in #Bithumb.”

The BTC whale sending their holding to Bithumb could be an indication of a move to take advantage of the 5% premium on Bitcoin of the South Korean exchange and sell-off its 3,001 BTC holdings—a popular trend in 2017~2018 where big Bitcoin traders in Asia move funds to arbitrage the "Kimchi Premium" in South Korea.

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BTC whales are depositing on major exchanges according to CryptoQuant alerts. On January 4, notable BTC whale inflows are: Binance with a total of 2557 BTC (Approx $84 million) and an alarming inflow to Bittrex today of 94,310 BTC (Approx $3.15 billion.)

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The Bitcoin price has gained over 300% through the course of 2020, despite a 50% crash in March brought on by the COVID-19 economic disruption. Institutional investors have been flocking to Bitcoin as a hedge investment against a depreciating dollar driving the BTC price to a new all-time high of $34,778.

As Bitcoin finally appears to be retracing after a monumental weekend, should the BTC whales sell their holdings, the crypto market be in for a shock price correction and perhaps another opportunity to buy the dip. 


Image source: Shutterstock

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