A massive Bitcoin transaction was spotted on the blockchain recently, indicating a whale may be moving their funds into self-custody. Data shows a Bitcoin whale has withdrawn $395.8 million from Binance to an unknown wallet, a sign that may be bullish for the cryptocurrency’s price.
Massive Bitcoin Transaction Spotted on the Blockchain
According to the data provided by Whale Alert, a cryptocurrency transaction tracker, a whale recently transferred 15,000 BTC away from Binance, the world’s largest cryptocurrency exchange by volume. At the current market price, these Bitcoins are worth around $395.878 million.
— Whale Alert (@whale_alert) June 19, 2023
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 also known as a “whale” who wanted complete control of their digital assets.
How Self-Custody Is Good For The Price Of Bitcoin
It is no new revelation that when dealing with digital assets, self-custody is the best way, 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.
For many long term holders, this is a safer option than keeping large amounts of crypto on an exchange which 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 frequently 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.
Also, when big players move their BTC off exchanges into self-custody wallets, it’s usually a good sign for Bitcoin’s price. Removing hundreds of millions of dollars of Bitcoin from exchanges means less supply available for trading. This increases scarcity on exchanges, thereby increasing the price of Bitcoin.
Bitcoin is now 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 ripples of bullish sentiment into the wider crypto industry.