A large bitcoin (BTC) investor sent 7,000 bitcoin – worth roughly $244 million – to crypto exchange Bitfinex late Thursday, potentially to realize profits from earlier purchases.
Whales are crypto investors who control large amounts of digital assets. Their crypto purchases and sales may have a sizable impact on markets, thus crypto watchers closely follow their behavior to anticipate market movements. Moving tokens to exchanges usually signals intention to sell, however, blockchain data doesn't show what happens with the tokens once it's at the exchange.
The moves of this whale are of particular note as whoever controls the wallet appears to have a good sense of timing. BitInfoCharts data shows the holder accumulated 46,500 bitcoin between November 2022 and January 2023 at prices under $20,000 per token versus the current price just under $35,000.
The owner then moved to offload a total of 36,500 tokens onto Bitfinex in late March and early April at what was then roughly around the high for the year near $30,000. The holder then took advantage of bitcoin's decline to $26,000 in May to accumulate another 2,000 bitcoin.
Blockchain data shows that those 46,500 bitcoins in March made the wallet the 14th-largest BTC owner globally.
The whale's latest transaction on Thursday is an indication that at least some investors who bought bitcoin at lower prices are on the move to lock in profits after the crypto's spectacular run-up in October from $27,000.
The $35,000 price level has proved to be a key resistance for any upward movement for the last two weeks, with any attempt for a breakout met with heavy sale orders pushing the price back down.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.