Bitcoin whale moved 5000 Bitcoins to the exchange address of Poloniex which caused concern to traders and analysts.
Bitcoin whale moves $40 M Bitcoin to Poloniex
Bitcoin whales have always played a major role in dictating the price action of the asset. Many crypto analysts, as well as traders, have looked at moves made by whales to predict the future price of the coin. Generally, the movement of whales towards a crypto exchange address suggests that a dump is imminent. As the person dumps i.e. sells off, his Bitcoins the price of the asset falls and momentum moves towards the bears.
Now a Bitcoin whale moved BTC worth nearly 40 million dollars to the Poloniex exchange from an unknown wallet. The unknown entity moved a huge number of coins to the exchange address attracting the eyes of other traders and analysts. However, people suspect that the move is not as simple as a crypto dump.
For context, inflows of this size are rare, and the avg. daily $BTC inflow into Polo is $2M – $3M.
We are monitoring to see if this is Polo shuffling funds. pic.twitter.com/wzXKukYItI
— TokenAnalyst (@thetokenanalyst) January 10, 2020
The sum boosts 100x daily influx of Poloniex exchange
Although the volume of the transfer might not be extremely large, especially when compared to Huobi exchange seeing the influx of 1 billion dollars in BTC, it still attracted suspecting eyes. This was because the daily influx of Poloniex was relatively low due to the prolonged consolidation of Bitcoin’s price. The sum moved by the unknown entity was equal to a hundred times the daily influx of Poloniex exchange.
Token Analyst suspected that Poloniex might be shuffling funds to bluff its trading volume. This is not a new idea for the industry as many exchanges have been found using such methods earlier in 2019.
Featured image by pixabay.