Bitcoin whale withdraws almost $400 million BTC from Binance.
A Bitcoin whale recently made a huge transaction on the blockchain, indicating that they may be moving their funds into self-custody. The data shows that the whale withdrew $395.8 million worth of Bitcoin from Binance, the world’s largest cryptocurrency exchange by volume, and transferred it to an unknown wallet. This could be a good sign for the cryptocurrency’s price.
Massive Bitcoin Transaction Spotted on the Blockchain
According to Whale Alert, a cryptocurrency transaction tracker, the whale transferred 15,000 BTC from Binance, which is worth approximately $395.878 million at the current market price. This is one of the largest single transactions involving Bitcoin that has been reported so far this year. Although the recipient address is unknown, the amount of the transaction suggests that it was likely an institutional investor or high net worth individual, commonly referred to as a “whale,” who wanted complete control of their digital assets.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 15,000 #BTC (395,878,446 USD) transferred from #Binance to unknown wallet https://t.co/PyhE6gBozq
— Whale Alert (@whale_alert) June 19, 2023
How Self-Custody Is Good For The Price Of Bitcoin
It is widely known that self-custody is the best way to deal with digital assets, especially on a large scale. By transferring from an exchange wallet into a private wallet, the whale now has sole control and responsibility over the private keys that can move the funds. This is a safer option for long-term holders, as large amounts of crypto kept on an exchange could be at higher risk of hacks or scams.
BTC recovers above $26,000 resistance | Source: BTCUSD on TradingView.com
When whales make significant transactions, it can often cause price volatility. If this whale plans to hold their BTC long-term, it could signal confidence in Bitcoin’s future value. On the other hand, if they were to sell a significant percentage of it, there would be an oversupply on the market, which would bring the price down, at least temporarily.
Moreover, when big players move their BTC off exchanges into self-custody wallets, it is usually a good sign for Bitcoin’s price. Removing hundreds of millions of dollars of Bitcoin from exchanges means less supply available for trading, which increases scarcity on exchanges and thereby increases the price of Bitcoin.
Currently, Bitcoin is trading above $26,000 after breaking the $26,000 resistance during the weekend. With the next Bitcoin halving less than a year away, whales moving their assets into self-custody may send some bullish sentiment into the wider crypto industry.