According to data provided by crypto analytics platform Lookonchain, a cryptocurrency whale deposited $77.7 million into Kraken, one of the leading cryptocurrency exchanges, a few hours ago.
The whale in question had accumulated $1.7 billion at an average price of $68,051 over the period from March 1 to Apr. 15.
The price of the largest cryptocurrency is down 1.3% over the past 24 hours, according to data provided by CoinGecko.
A correction on the cards?
Recent CryptoQuant data shows that exchange inflows from Bitcoin whales have reached the highest level in five months. This shows that large holders are eager to engage in profit-taking. This could be a potential sign of a substantial price correction.
As noted by Glassnode, Bitcoin investors are currently sitting on the largest paper gains relative to their cost basis as of the day of the halving event. Its data shows that the average unit is holding a paper gain of an impressive 126%.
With that being said, it is important to note that such metrics can potentially generate false signals, which is why market participants should exercise caution.
Disastrous ETF outflows
The cryptocurrency market is currently under renewed bearish pressure due to significant outflows recorded by the biggest Bitcoin exchange-traded funds.
On Thursday, they recorded $217 million worth of outflows, with Grayscale's GBTC alone bleeding as much as $140 million.
Coupled with unfavorable macroeconomic factors, the outlook for Bitcoin remains uncertain. The largest cryptocurrency is down 0.9% over the past week, struggling to regain momentum.
Vladislav Sopov
Godfrey Benjamin
Tomiwabold Olajide
