According to data from blockchain analytics platform LookOnChain, approximately $26.3 million worth of Bitcoin was sold in the hours before the price fell significantly.
This sizable sell-off, believed to be whale activity, has sparked speculation among market observers about its motivations and intentions.
According to LookOnChain, a trader deposited 395 BTC worth $26.3 million on the Binance exchange hours before the Bitcoin price fell.
From April 5 to April 18, this trader bought 536 BTC worth $35.15 million at an average price of $63,729 and sold it at $66,530 over the past two days, making a profit of about $1.5 million.
Source: LookOnChain
This move left many in the cryptocurrency community wondering. It is questionable whether whales have special information about the market that ordinary investors do not have.
Some speculate that this is a prescient attempt to take advantage of market movements that are imminent to sell, and that traders or large holders may have a high level of insight into market conditions.
They may have anticipated negative news or events that could trigger a price decline and have taken action to protect their assets.
Additionally, traders’ selling may be a reaction to technical indicators and market signals, suggesting that large traders may have been responding to bearish patterns or signals that indicate a possible decline in the price of Bitcoin.
In this scenario, it is possible to interpret that the whale would have sold its holdings to reduce losses or take advantage of short-term trading opportunities.
On CoinMarketCap, in the morning New York time, Bitcoin was trading at $63,047, down 4.6% from 24 hours ago.
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