- A famous cryptocurrency tracker reported two transactions involving huge amounts of BTC.
- The transactions involved the transfer of 5,100 BTC from an unknown wallet to Coinbase (NASDAQ:COIN) and vice-versa.
- Netizens speculate on what it might be for.
On April 11, Whale Alert, a cryptocurrency tracker, reported the transfer of 5,100 BTC from an unknown wallet to Coinbase. During this transaction, the price of 5,100 BTC was $210,943,268.
5,100 #BTC (210,943,268 USD) transferred from unknown wallet to #Coinbasehttps://t.co/NUmK4gDm41— Whale Alert (@whale_alert) April 11, 2022
4 hours later, the exact same transaction happened the other way around – 5,100 BTC from Coinbase to an unknown wallet. During this transaction, the price of 5,100 BTC was $206,822,775 – $4 million lower than four hours ago.
5,100 #BTC (206,822,775 USD) transferred from #Coinbase to unknown wallethttps://t.co/31vidz6Y3R— Whale Alert (@whale_alert) April 11, 2022
There can be many reasons why such a huge amount of BTC is being moved around. One such possibility is the market’s current volatility. Just a few weeks ago, Bitcoin has been trading at over $45,000 – even reaching heights of nearly $48,000 a few weeks prior. However, ever since then, the price has continued to plunge, even reaching lows of $39,000 at the time of writing.
On the other hand, some replies to the report talk about conspiracy and suspicious transactions. Netizens have various claims such as scare retail, malicious transactions, and money laundering. Certainly, as cryptocurrency revolves around the concept of anonymity, all these possibilities could be true. Or it could simply be a user transferring coins from their wallet to an exchange.
All of these are pure speculation. Nobody can truly know what goes behind transactions – much less a 5,100 BTC transaction.
However, the facts we do have are the following: there is somebody who has 5,100 BTC somewhere and they’re currently moving it around. Could it be a coincidence that they’re transferring coins at this state of the market?
At the time of writing, BTC trades at a price of just over $40,000 with a decline rate of 14% in the past 7 days. It has a market capitalization of over $760 billion and a 24-hour trading volume of around $30.5 billion.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.