A mysterious new Bitcoin whale transacted 44,612 BTC, worth $1.9 billion ($2.8 billion AUD) at the time of writing.
A new Bitcoin whale on the block
Whale watching is a popular hobby among zoologists and crypto holders. The latter got rewarded on Saturday with the sight of a massive new whale that sent a cool 44,612 BTC worth $2.8 billion AUD across wallets. (Source: zycrypto.com)
According to ZyCrypto, the wallet ranks 14th on the Bitcoin Rich List with this transaction. Observers were predictably stunned, with one commentator lauding the whale’s “balls” and another one wondering if the lack of a test transaction meant that there was much more to come. Yet others were wondering if the transaction had something to do with the US Department of Justice recently seizing 94,636 Bitcoin. The case generated major headlines since the couple detained are facing charges for masterminding the 2016 Bitfinex hack, which shook down the exchange for 119,754 coins.
However, an observer noted that the whale may not be as new as expected and that this could just be a case of a change of wallet addresses. The sum originated from another address but is 800 BTC short, indicating that the whale may be shuffling money around.
Where the price of Bitcoin could be headed in the near term
Seeing Bitcoin whales move money around is not as unusual as it seems. Compared to other capital markets, even the seemingly massive market for Bitcoin is chump change and can fairly easily be moved by a big whale selling some of their inventory at once.
While whales may be concerned with divesting or investing their holdings, retail investors wonder whether these big holders will divest or invest. Following smart money is a good investment strategy, and smart money tends to be more concentrated among big holders.
However, Bitcoin is currently looking rather subdued and seems to be carrying the weight of geopolitical uncertainty and a poor macroeconomic backdrop on its shoulders. After a swift drop from its yearly open of $64,000 AUD, the price seemed to have found a bottom in the mid-$40,000s and recovered back into the $50,000s. However, fears of a possible escalation of the Ukraine crisis have cut a possible price rally short. Analysts fear that Russian intervention in Ukraine, and the sanctions Western nations have promised would follow it, could disrupt the global economy and possibly plunge it back into a recession.
Add to that the still excessively high inflation numbers coming from advanced economies and the monetary tightening that is on the cards, and crypto seems in a rather poor spot now. Deleveraging from major investors could cause a serious price drop for Bitcoin, which would spell disaster for higher-beta assets like altcoins. Although another price correction is anything but guaranteed, most analysts do not foresee calmer waters for Bitcoin before the second half of 2022.
Retail analysts should probably keep an eye out on whales and their money movements. It may just tell them a thing or two about what to do with their own investments.