What happened: An anonymous bitcoin BTC/USD Wal just transferred $21,089,319 worth of bitcoin from Gemini, and the investor then sent those funds to Binance.
You can view more details about the transaction here.
Why it matters: Bitcoin “whales” (investors holding $10 million or more in BTC) typically send cryptocurrency between exchanges when looking for liquidity. If a whale were to sell all of its bitcoins on an exchange, it would have a high price effect. That is, the investor would push the price of bitcoin down significantly on that exchange.
Instead, the whale can distribute the funds through exchanges in order to have sufficient liquidity. Of course, we don’t know for sure if this bitcoin wallet transfers the funds to be sold as this is just speculation. Another reason why investors move bitcoin through exchanges is security preferences.
The best way to secure bitcoin is to hold it in a hardware wallet, which is not possible by holding digital assets on an exchange. However, certain exchanges, like Coinbase, hold investors’ funds in hardware wallets for them, adding an extra layer of security for your digital assets.
Price promotion: Bitcoin is down 0% in the last 24 hours.
See also: How to buy bitcoin
Public blockchain data comes from Whale Alerts Twitter.
This article was created by Benzinga’s automated content engine and reviewed by an editor.
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