Recently, an on-chain data provider Lookonchain reported that a whale or institution had deposited a whopping 2,364 Bitcoin (BTC) worth almost $140 million on Binance, one of the largest cryptocurrency exchanges in the world. This significant move has ignited speculation within the cryptocurrency market as to the intentions behind this deposit.
Market Behavior
Traditionally, deposits to exchanges are seen as an indication of potential selling activity, while withdrawals suggest a desire to buy. The recent slowdown in net capital inflows into Bitcoin, as highlighted in Glassnode’s weekly report, suggests a balance between investors taking profits and losses. Such equilibrium is not common in the Bitcoin market, with the majority of days experiencing higher capital inflows.
Following the all-time highs of nearly $74,000 in mid-March, the price of Bitcoin has experienced a period of choppy sideways movement, testing the confidence of new investors. Despite this, a significant portion of the Bitcoin supply has remained untouched and securely held in the three to six-month age range.
CryptoQuant, an on-chain analytics firm, has pointed out that the Bitcoin market cycle indicator is currently in the bear phase. According to Julio Moreno, the head of research at CryptoQuant, if Bitcoin’s price drops below $56,000, the risk of a larger correction increases significantly. The current price of Bitcoin stands at $59,005, down by 1.05% in the last 24 hours, amid choppy trading activity.
Despite the lackluster trading activity and potential bearish trend, Bitcoin whales seem to be on the rise. According to Santiment, there has been a net increase of 283 wallets holding at least 100 BTC in just one month. The total number of such wallets now stands at 16,120, marking a 17-month high.
The recent deposit of a substantial amount of Bitcoin on Binance has sparked speculation and uncertainty within the cryptocurrency market. With indicators pointing towards a potential bearish trend and increased whale activity, it will be crucial to monitor how these factors play a role in shaping the future of Bitcoin’s price and market dynamics.