Today whales withdrew $ 66 million from OKEx and Bitfinex.
This may serve as an indication of investor confidence that the crypto market will withstand the current crisis..
However, the difficult macroeconomic situation complicates forecasting the future prospects of the crypto market.
International consortium of news organizations developing transparency standards.
Today, the market has seen a rather active surge in the withdrawal of funds from cryptocurrency exchanges to wallets. Perhaps this is a good sign.
Why people are buying cartoon cats on the blockchain
Members of the crypto community are often guided by data on the movement of funds between whale wallets and accounts on crypto exchanges. They rely on such statistics as one indicator of general market sentiment. Today's massive outflow of funds from exchanges can be regarded as a likely signal that major players are not preparing for aggressive sales..
Whales take money from exchanges
Today, the analytical service Whale Alert (@whale_alert), which monitors cryptocurrency wallets, informed its readers about two such large transactions..
So, 5000 BTC was withdrawn from the Bitfinex exchange to an unknown external wallet, which is equivalent to $ 36.4 million.
5,000 #BTC (36,484,419 USD) transferred from #Bitfinex to unknown wallet
– Whale Alert (@whale_alert) April 9, 2020
It is noteworthy that at about the same time on another exchange – OKEx – a similar operation was recorded to withdraw funds to an external wallet. Here the amount turned out to be slightly smaller and to 4000 BTC ($ 29 million).
4,000 #BTC (29,109,410 USD) transferred from #OKEx to unknown wallet
– Whale Alert (@whale_alert) April 9, 2020
Certainly, based on this information alone, it would be naive to make any far-reaching conclusions. However, in a broader context, it may serve as an indication of the decision of the whales – at least some – to walk around the coins in an unprecedented economic situation. In principle, this does not contradict the general short-term prospects of the crypto market.
Times of trouble
Analysts still cannot come to a consensus about how the halving coming in May will affect the crypto market. Some believe that miners will try to sell as many coins as possible before the reward is cut to compensate for the rising costs. Meanwhile, others point out that after the wave of miners' surrender, the situation is now stabilizing, and the bitcoin hashrate is recovering..
In addition, due to the Covid-19 pandemic, the current situation is unparalleled and is complicated by a whole bunch of macroeconomic factors, including a catastrophic rise in US unemployment and a widespread drop in consumer confidence. The expected economic deterioration may prompt numerous hodlers to start selling their coins in pursuit of cash, some believe..
Another unknown in this equation is the continuing unprecedented injection of liquidity into the traditional financial system, which so far has only led to the fact that the monetary authorities have already practically emptied the arsenal at their disposal..
In the face of this total uncertainty, the withdrawal of money by whales to their external wallets may serve as an indication of the confidence of a number of investors that cryptocurrencies will still be able to weather the current storm..
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