According to on-chain data provider Lookonchain, a whale or institution has deposited 2,364 Bitcoin (BTC) worth nearly $140 million to one of the world's largest cryptocurrency exchanges, Binance. This massive move, occurring hours ago, has sparked speculation in the cryptocurrency market.
A whale/institution deposited 2,364 $BTC($140M) into #Binance 4 hours ago.Address:3NVeXmBcmXsBSvXgpQuXWuGg4pDBDEWEok pic.twitter.com/kwiOxGe7ei
— Lookonchain (@lookonchain) August 31, 2024
Depositing to exchanges typically indicates an intention to sell, while withdrawals suggest an intent to buy. Whether this move signals selling or a strategic play remains unknown.
According to Glassnode's most recent weekly report, net capital inflows into Bitcoin have slowed in recent months. This suggests a degree of equilibrium is reached between investors taking profit and loss.Notably, capital inflows into the Bitcoin market are rarely this quiet, with 89% of days seeing a greater capital inflow (excluding loss-dominated bear markets).
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After reaching all-time highs of nearly $74,000 in mid-March, the confidence of new investors was tested by choppy sideways price action for several months. Throughout this process, a major portion of the Bitcoin supply has remained securely held and is in the three-month to six-month age range.
Bitcoin price outlook
According to Glassnode, the market has remained within a structurally ordered downtrend for over five months with a period of consolidation and accumulation following.
This view is supported by on-chain analytics firm CryptoQuant, which indicated that the Bitcoin market cycle indicator is again in the bear phase. This observation was made by CryptoQuant head of Research, Julio Moreno, who also stated that from a valuation perspective, if the Bitcoin price pierces $56,000 to the downside, it stands the risk of a larger correction increase.
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At the time of writing, Bitcoin was down 1.05% in the last 24 hours to $59,005 amid sideways choppy trading price action in the week. The lead cryptocurrency is tending toward a bearish close in August, already down 8.44% for the month.
Despite Bitcoin's lackluster trading activity, Santiment noted that Bitcoin whales are growing in number. In just one month, there has been a net increase of 283 wallets holding at least 100 BTC, with the current total of 16,120 such wallets on the network, shattering a 17-month high.
