Bitcoin, the world’s largest cryptocurrency, touched $57,000 on Thursday after a significant rise in demand from retail and institutional investors. Also, BTC whales are on the move after the recent price surge.
According to the latest data published by Blockchain tracker and crypto analytics platform, Whale Alert, an anonymous Bitcoin user moved 5,000 BTC worth over $280 million to an unknown crypto wallet. The transaction was executed on 11 March at around 3:00 UTC. It was recorded on blockchair.com.
Bitcoin registered an all-time high of $58,000 on 22 February after Tesla announced a $1.5 billion investment in the world’s largest cryptocurrency. The price of BTC dipped around 20% at the end of February, but it has recovered since then, and Bitcoin is now trading above $56,000 with a market cap of $1.04 trillion. BTC now has nearly 10% of the total market cap of mined Gold.
Bitcoin’s price rise has accelerated anonymous transactions. Finance Magnates earlier reported a surge in anonymous crypto transactions. BTC’s supply at leading digital exchanges is dropping sharply as well. In the latest move, an unknown user moved 2,000 BTC worth nearly $114 million from crypto exchange Binance to digital wallet Xapo.
Bitcoin Outflows
Coinbase, one of the largest cryptocurrency exchanges in the world, reported significant BTC outflows in recent weeks. According to the latest data posted by Crypto Quant, around 15,700 BTC worth over $850 million left Coinbase within a single day earlier this week. Bitcoin whales are planning to create a supply shortage to drive the demand for Bitcoin. Finance Magnates also reported about the liquidity crisis Bitcoin is going through. JP Morgan’s Strategist, Nikolaos Panigirtzoglou mentioned in a recent report that BTC’s Liquidity has deteriorated in the last few months.
“Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact,” Panigirtzoglou highlighted in a research note in February.
