After a significant upward movement, Bitcoin consolidated for almost 33 days within a range of $29,456 and $31,563. During this market consolidation period, a majority of whales and institutional investors participated, including Microstrategy and other prominent investors.
However, a slight market correction created fear among investors. In the recent market crash, several whales made significant sell-offs of around $55 million in cryptocurrencies, particularly in WBTC (Wrapped Bitcoin) and ETH (Ethereum). Notably, an address with the address “0x700b” dumped 150 WBTC, worth approximately $4.36 million, at a unit price of $29,053. Additionally, another whale with the address “0x390c” offloaded 3,967 ETH, amounting to $7.32 million, at a unit price of $1,846. Furthermore, “0x01214,” another whale address, sold 7,115 ETH, valued at approximately $13.12 million, at $1,844 per unit. These actions were reported by the vigilant Twitter user “Lookonchain” on July 25, 2023, at 8:46 A.M.
Within just half an hour of these sell-offs, Lookonchain noticed another significant movement in the market. An unknown whale sold 16,751 ETH, but this time, the whale executed a strategic move. Firstly, the ETH was transferred to the popular cryptocurrency exchange Binance, where it was likely converted to a stablecoin, Tether (USDT), pegged to the US dollar. Subsequently, the whale deposited this substantial amount, approximately 30.8 million USDT, into two addresses affiliated with DeFi platforms, Aave and Compound. These platforms are widely recognized for their lending and borrowing services within the decentralized finance ecosystem.
It’s important to highlight that WBTC plays a pivotal role as an ERC-20 token on the Ethereum blockchain, backed by real Bitcoin reserves. This functionality enables Bitcoin users to seamlessly access decentralized finance applications and further bolsters liquidity for Ethereum applications.
Despite these sell-offs and market corrections, investors must consider the current overall scenario of the cryptocurrency market. Positive news from banks, institutional investors, and various countries expressing interest in Bitcoin and other cryptocurrencies indicate that market corrections should not be mistaken for crashes. Investors should carefully assess the situation before making decisions to participate in the crypto market. © Todayq News
