As the morning began this Monday, Bitcoin price fell sharply breaking the $16.5k support level. Many in the market are speculating that this could be the ultimate move to confirm a bottom at $14,500, while others feel that looking at the historical data of our bear market trends, we could see a rise from these current levels beginning soon.
Most of this chatter began when a whale alert was tweeted the morning of the 28th revealing that 127,351 Bitcoin worth $2.06 billion was transferred from CEX titan Binance to an unknown wallet. This then raised red flags in the crypto space about the motives and next moves from Binance regarding the large amount of BTC.
A new fear of a coordinated dumping of BTC began to shiver through the crypto community as the cold wallet recently holding the @2.06 billion worth of BTC now shows a balance of $0. This was only amplified as BTC took its sharp fall due to a sudden selloff this morning.
With Bitcoin showing a 2% decrease in price in the past 24 hours as well as a trading volume increase of 30% from its massive selloff this morning, we now have a 24-hour low of $16,086, a high of $16,594, and a current trading price of $16,223. We hope to see a stabilization of this trading throughout the day as a clarity for the wallet transfers may be made.
Back on October 26th as well as on November 11th the same cold wallet was recorded making similar large moves regarding BTC. Shortly after on November 18th, the same wallet then saw a massive influx of 127,351 BTC. Which has now been transferred to the unknown wallet in question.
With many community speculations around the move by Binance, “CZ” has released a statement this morning addressing the fear. CZ replied, “This is part of the Proof-of-Reserve Audit. The auditor required us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD!”
CZ has since tweeted, “We will be doing this on all cold wallet addresses in the next few hours/days. Some won’t trigger a whale alert. It all depends on the input address. I wish Whale alert could be smarter about its reporting.” More updates to come throughout the day as we closely monitor the next movements of Binance.
With this clarification we will hopefully see a calming of nerves in the market as the morning progresses and more are made aware of the intentions behind the move from Binance. It is safe to say that the market and crypto community is looking over their shoulder in more attempt to protect themselves from another FTX style implosion.
Do you think this move from Binance is as advertised or do you feel there is more to this story.