Crypto exchange withdrawal data suggests that Bitcoin whales are accumulating. Its often seen that more deposits mean long-term hodlers are booking profits, and higher withdrawals suggest accumulation. Recently, the amount of Bitcoin moving out of exchanges has increased, which is positive. This suggests that we could soon see an upside to price as the supply on exchanges keeps on dropping.
Bitcoin whales are accumulating
Whalealerts a Twitter page that often reports on large crypto transactions on various exchanges reported some on Coinbase. Bitcoin worth hundreds of millions were sent out of the exchange, most likely to a hardware wallet. All of the transactions combined a total value of $1.3 billion. The largest transaction was around 9,901 Bitcoin ($387 million). This clearly shows that some whales are stacking up coins at cheap rates.
Lark Davis, a crypto analyst, reported that the transactions could be internal ones as well. This means that Coinbase could have been transferring Bitcoins from one wallet to another. On the other hand, it is possible that it is a new whale that has been stacking up Bitcoins. In the latter case, things look a lot better to make a case for Bitcoin.
Even if this transaction may or may not be one where a whale has been accumulating, overall, it seems they are. From July 2021, the net flow of exchanges has been negative, which is again a positive sign. And though the price has been stuck at one level for a while, Glassnode data shows that investors are buying.
Should you buy it now?
The price of Bitcoin is so volatile that it is impossible to time the market every time. So, the question you should be asking is, are you willing to hold BTC long-term? If yes, then it is a good time to buy now. But the trick to this is dollar-cost averaging wherever you get a chance. This makes sure that you don’t lose out on opportunities. And more often than not, it gives you an edge over other investors.
Do you think this is the right time to buy as Bitcoin whales are accumulating? And do you think that the movement from Coinbase was a new market whale? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: US Treasury launches cryptocurrency awareness program.
