World’s ninth largest bitcoin whale buys 7,000 BTC during crash

As sardines despair as the price of Bitcoin (BTC) plunges into the $22K region, whales go shopping.

The ninth largest whale – a term that refers to an investor who holds large amounts of cryptocurrencies – of bitcoin on the market acquired 7,000 BTCs on the morning of this Monday (13), equivalent to R$ 880 million at the time of purchase.

The transaction took place around 5:30 am ET, a time when the price of bitcoin was hovering around $24,660. A few hours later, the currency’s price retreated further until it reached $22,812, the worst price since December 2020.

The hypothesis that this transaction was a purchase gains strength when analyzing the origin and destination of the 7,000 BTCs. According to public blockchain data, the assets went from a wallet held by the Bitfinex exchange (multiple addresses) to a wallet (bc1q…rzr) whose holder is unknown.

Transactions in this format are usually made by investors who buy cryptocurrencies at a brokerage and then withdraw for self-custody.

The 7,000 BTC target wallet is currently ranked 9th on BitInfoCharts’ Bitcoin Rich List, which tracks the biggest bitcoin accumulators on the market.

Removing wallets whose holders are cryptocurrency exchanges from the list, the unknown whale that made the purchase this morning is the fourth richest in the world.

mystery whale

The buying and selling patterns suggest that the portfolio may belong to a single investor rather than a business organization such as an exchange or investment manager.

Since it was created in October 2021, the wallet has only carried out 14 transactions. All of them were bitcoin entries, with no withdrawals that signal the sale of part of the equity.

The wallet is buying bitcoin on a recurring basis throughout 2022, the year the asset’s price stagnated and dropped to half of what it was worth last November.

Today’s purchase was one of the largest on record since the wallet was created. It is only lower than the purchase of 9,000 BTCs from February and 7,200 BTCs from December 2021.

In all, the mysterious whale holds 64,300 BTCs, about R$7.7 billion at the current bitcoin price.

Bitcoin Leaving Exchanges

Bitcoin’s sharp drop in the last 24 hours represents a moment of pain for most investors – especially the small ones, dubbed “sardines”. On the other hand, part of the whales see the moment as an opportunity to accumulate more bitcoin.

O Whale Alerta Twitter profile that tracks large transactions on the industry’s top blockchains, shows that the aforementioned whale wasn’t the only one that went shopping on Monday.

The profile showed that at least 9,496 BTC left Coinbase this morning in just four transactions that were destined for wallets of unknown whales.

The number of withdrawals at brokerages by smaller investors is also growing. However, these moves may represent more of a custody shift than buying currencies on the low.

Celsius, a cryptocurrency lending company, spread distrust in the market after suspending withdrawals from all customers last night (12).

Binance, for example, had to pause bitcoin withdrawals today citing an issue caused by a “stuck transaction” that generated a backlog on the platform, i.e. a list of unfulfilled withdrawal requests.

Withdrawals stopped at 8:43 am and were suspended for nearly four hours, returning to normal at 12:30 pm, according to Binance.

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