Cryptocurrency Whales Converting Bitcoin to Cash, Leading to Price Drop
Recently, two wallets have deposited 9,500 BTC to Binance since June 27, potentially liquidating approximately $550 million worth of cryptocurrency.
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Identified by blockchain analysis firm Lookonchain, these wallets indicate that whales are converting their Bitcoin holdings to cash. Initially, the value of these Bitcoins was close to $575 million, but they are currently valued at $537 million.
Lookonchain analyzed the timing of transfers from these two wallets. They discovered a correlation between transfers to addresses tagged as Binance by blockchain analysis firm Arkham Intelligence and declines in Bitcoin prices. These large-scale sales have led to noticeable drops in Bitcoin prices.
One of the wallets still holds over 4,300 Bitcoins, currently valued at approximately $250 million. This wallet last deposited funds to the Binance account two days ago.
The cryptocurrency market has also been shaken recently by Mt. Gox repaying its creditors in Bitcoin and Bitcoin Cash. This news has caused liquidations worth hundreds of millions of dollars in the crypto market. The repayment timeline varies for each exchange, and some creditors may have to wait up to three months to receive their coins.