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A massive 8,022 BTC worth nearly $738.86 million has recently exited major crypto exchange Coinbase, sparking interest on the crypto market.
According to the blockchain data tracker Whale Alert, "8,022 BTC worth $738,863,880 were transferred from Coinbase to unknown new wallet."
The identity of the receiving wallet remains unknown, adding mystery to the transaction. The fact that the wallet is entirely new sparks speculation that a new Bitcoin whale might be emerging on the scene.
This move has sparked speculation about whether it signals a major accumulation by a whale or a large holder, institutional activity or just mere reshuffling of funds. However, the exact reason for the move remains unknown.
Tomiwabold OlajideThis large movement of BTC comes amid a broader sell-off on the crypto market, which has resulted in $1.52 billion in liquidations in the last 24 hours.
Bitcoin sank to a three-month low of $86,869, weakened by sell pressure in equities as the crypto market awaits its next catalyst.
What to watch next?
At the time of writing, Bitcoin was down 8% in the last 24 hours to $87,143. According to Glassnode, this drop has caused Bitcoin to trade below the short-term holder (STH) cost basis at $92,500, which has historically served between local-scale bull and bear phases.
Godfrey BenjaminThe STH MVRV is 0.96, implying that short-term holders (STHs) have incurred an average 4% paper loss. A failure to regain the STH cost basis could mean continued sell pressure from recent buyers.
Glassnode identifies the $71,000 to $72,000 level as a critical level to monitor, noting prior post-ATH corrections (for example, in May 2021, November 2021, April 2024 and February 2024), when the price extended below the Bitcoin short-term holder cost base. If past trends hold, this may help frame potential downside risks.
BTC Cost Basis Distribution shows that the last substantial demand zone appears around $89,000-$87,000. Below this, there are relatively few investors with cost bases until $71,000 to $72,000, which could mean weaker support in this range, giving bears more control.
Dan Burgin
Vladislav Sopov