Capitulation? Massive Bitcoin Whale Dumps $46 Million in BTC as Price Plunges

by

As a seasoned crypto investor with a fair share of battle scars from market volatility, I can’t help but find the recent events intriguing. The sudden move by this “giant whale” to deposit BTC into centralized exchanges during a market crash is reminiscent of a squirrel stockpiling acorns before winter – only on a much grander scale.

When Bitcoin, the leading digital currency, dipped below $60,000 by over 4% at the start of October, a significant investor (often referred to as a “whale”) resumed sending Bitcoin to centralized trading platforms.

As reported by Spot On Chain on social media platform X (previously known as Twitter), a significant investor (referred to as a ‘whale’) amassed approximately 3,933 Bitcoin, worth around $234 million, on the prominent cryptocurrency exchange Binance. The average price at which these coins were acquired was roughly $59,591 per coin during the period spanning from late August to mid-September.

After that, the whale transferred approximately 750 Bitcoins, valued at around $46.3 million at a price of $61,751 per coin, to Binance. Meanwhile, they retained over 9,736 Bitcoins worth more than $600 million in their wallet, which could potentially be sold on the market if needed.

During the market’s downturn caused by Iran’s attack on Israel, this massive whale resumed transferring Bitcoin (BTC) to cryptocurrency exchanges (CEX). Notably, over a period of approximately one month (Aug 29 to Sep 15), this whale had amassed a total of 3,933 BTC ($234M) from Binance at around $59,591 and then began transferring 750 BTC ($46.3M) to Binance at roughly $61,751.— Spot On Chain (@spotonchain) October 2, 2024

In my analysis as a financial analyst, I’ve noticed that historically, October has been a favorable month for Bitcoin, with an average growth of approximately 28.7% from 2010 to 2023. However, this year, we’ve seen a significant sell-off instead, deviating from the typical trend.

The sell-off came after Bitcoin defied its historically poor performance in September, and amid rising geopolitical tensions in the Middle East that have seen Israel launched a ground operation in Lebanon, and Iran fire around 180 ballistic missiles at Israel in what Iran’s Revolutionary Guard Corps said was a retaliation for the assassinations of Hamas’s political leader and an Iranian commander.

As a market analyst, I’ve noticed that the wider cryptocurrency market has experienced a shift as well. Yesterday, the Fear and Greed Index moved from a “neutral” state to a “fear” level, following a period of “greed” we saw late last month.

It’s important to point out that this index is founded on market emotions. When fear arises among investors, it can create a perceived buying opportunity. Conversely, when greed prevails, it could suggest that the market might be on the verge of a downturn.

Contrary to the rising price of gold, traditionally considered a safe asset, Bitcoin – often likened to its digital counterpart – surged past $2,660 as tensions escalated. Top wealth managers suggest that gold, oil, and defense stocks are crucial investments during geopolitical upheaval, serving as hedges against instability.

Read More

2024-10-03 05:40