Binance's Big Move Sends... Positive Shockwaves Through Bitcoin's Network?
Earlier today, Binance accounced that they would be moving a large amount of funds to a new address, as an attempt to give transparency to their community. Interestingly, though, there was only 15,000 BTC moved into this address they disclosed.
The much larger transfer, as we see in the Tweets above, occurred with the sending of $3.47B in Bitcoin to address 39884E3j6KZj82FK4vcCrkUvWYL5MQaS3v. This one was a much bigger deal, as it was the 2nd largest individual move of the year on the BTC network.
Predictably, transaction volume has surged considerably due to this one transfer, as we can see below.
Also, you can see what this did to the supply on exchanges, moving BTC all the way down to 5.74% on exchanges. Take this with a grain of sale, though. As this new address where the coins were sent to may end up being an exchange addresses that just hasn't received that attribution yet.
The amount of unique tokens has also taken off to about a 7-week high. We could definitely consider this a positive, even if we're finally seeing an uptick in one of BTC's most important on-chain utility metrics thanks to one single Binance transfer. At the very least, this is indicative that some dormant movement is finally starting to occur.
And finally, we can see that there was a giant realized loss spike that coincided with this transfer. More than likely, this is indicative that all of these coins were finally moved at a price considerable lower than when they were obtained, in 2021 and 2022.
As the title mentions, the most interesting aspect of these giant Binance transfers is that Bitcoin, in particular, has responded positively to start the week. Since the time of the transfer early on Monday, BTC's price is up a modest +1.6% while most of the altcoin pack is lagging behind.
Sometimes all an asset needs is for its network to begin getting active again. Bear markets don't just happen because whales sell or institutional addresses leave crypto. Sometimes it's as simple as markets becoming overly stagnant. And perhaps this move from Binance, which was weirdly undisclosed unlike the much smaller move that they made, could be the first of many... whether for ethical reasons, or not so much.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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