Bitcoin whales are back againWhale moves Bitcoin worth over $40 million to Poloniex exchangePoloniex records its highest daily influx after the whale movement
Bitcoin News Today – Bitcoin (BTC) seems to be having a great start this year. After starting the first few days bearishly, the past eight to nine days have been bullish for BTC and the rest of the coins in the market. Bitcoin has been trading in the green for some days now and it is well seated over the $8k level, carrying most altcoins in the market along.
The Effect of Whales on Crypto Markets
Whales have always played a significant role in dictating the price action of Bitcoin (BTC). Many digital currency traders and analysts have looked at Bitcoin whale moves to predict the future price of the digital currency. Normally, the movement of whales towards the address of a digital currency trading platform implies that a dump is on the way.
As the whale dumps the coins, that is selloff their BTC coins, the price of the digital currency plunges and momentum moves towards the bears.
Bitcoin (BTC) Price Today – BTC / USD
Whale Moves 5,000 Bitcoin to Poloniex
Recently, a BTC whale moved 5,000 Bitcoins to Poloniex trading platform from an unknown wallet address. The coins moved are worth about $40M. The whale moved an enormous number of BTC coins to the address of the trading platform, attracting the eyes of other analysts and traders. Nevertheless, people are saying that the move is not as simple as a digital currency dump.
Our bot picked up a massive $39M $BTC inflow into Poloniex from an unknown address. @Poloniex
For context, inflows of this size are rare, and the avg. daily $BTC inflow into Polo is $2M – $3M.
We are monitoring to see if this is Polo shuffling funds. pic.twitter.com/wzXKukYItI
— TokenAnalyst (@thetokenanalyst) January 10, 2020
The Sum of BTC the Whales Moved Equals 100x Poloniex’s Daily Influx
The transfer volume might not be enormously large, especially when compared to trading platforms such as Huobi that sees an influx of BTC worth $1 billion. Nevertheless, the move still attracted suspecting eyes. This is because the daily influx of the trading platform was relatively low as a result of the prolonged consolidation of BTC price.
The worth of the total coins the whale moved was equal to one hundred times the daily influx of Poloniex trading platform. This means that the digital currency trading platform has never recorded such an amount in a day before. Digital currency analysts are suspecting that the crypto trading platform might be shuffling funds to bluff its trading volume.
However, this is not something new in the digital currency industry, as many crypto trading platforms used similar methods earlier last year.
Bitcoin Price Performance
At the time of writing, the world’s largest digital currency by market cap is consolidating prices. Bitcoin is now trading at $8,093 with immediate resistance at the $8,120 level. Whereas the digital currency is still strongly supported at the $8k level, and it still looks poised for more gains in the near term.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she’s not writing, she spends time with her adorable cat, Ginger and works out often.