A ‘massive buy’ sign? Crypto Wells transfers $1.3B to Coinbase
The transfer of a total of $1.3 billion USDC to crypto exchange Coinbase on Thursday could be a “massive buy signal” for Bitcoin (BTC) and Ether (ETH), according to market observers.
“The move of USDC to the currency is a big buy signal, as the saying goes on the Internet, ‘money printer go brr,'” crypto trader Blockchain Mane told Cointelegraph.
The five transfers totaled $1.3 billion – amounts ranging from $150 million to $350 million were made to Coinbase on April 25 at 08:15 UTC, according to Etherscan data.
Often, traders see a large Storticoin deposit as a sign of large buy orders in the near future, while a significant crypto deposit on the exchange may indicate a potential sell-off, which traders warn of a downturn.
“If this is indeed a whale purchase, and at current prices, yes, it could have a huge impact on the value of the assets you're buying, which at that stage is definitely just Bitcoin and Ethereum,” crypto analyst Lark Davis, aka “The Crypto Lark,” told Cointelegraph.
However, crypto analysts agree that whale movements are never a reliable indicator for the crypto market.
“A lot of attention is paid to whale movements, but we don't really know what they're doing,” Davis said.
“$1.3B is a good amount of capital, but it depends on where it's deployed,” added Brian Jung, a crypto trader and YouTuber.
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Davis also noted that whales may place limit orders instead of buying the assets outright, which instead creates strong support levels for the cryptocurrencies they invest in.
“A limit order goes in, creating a buying wall that acts as a price support layer for assets,” Davis said.
However, he cautioned that it is “not at all clear” how these large transfers will affect the market.
Meanwhile, Jung argued that if large amounts of money flowed into one crypto token, the market “could change in a positive way,” arguing that “additional liquidity would help boost the value of other cryptos.”
Although he doubts that the investor will see the benefit of doing this, because of the excessive exposure.
“If that amount were to be deployed into an altcoin with a $100M market cap, the price would increase significantly, but I can't imagine any whale doing this without anything in mind as it would be impossible for them to be profitable doing this.”
“It wouldn't have the same effect if it was used to buy bitcoin,” Jung added.
According to the Fear and Greed Index, crypto market sentiment is slightly lower, but the biggest financial movement has taken place.
The greed score dropped from 64.04 to a neutral level of 59.78 in the last 24 hours, suggesting traders' focus is moving away from accumulation.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
