Bitcoin Whale Just Transferred $ 46 Million BTC From Coinbase To Binance
What happened: An anonymous Bitcoin whale just transferred $ 46,074,306 worth of Bitcoin out of Coinbase, and the investor then sent those funds to Binance.
You can see more details about the transaction here.
Why is this important: Bitcoin “whales” (investors with $ 10 million or more in BTC) typically send cryptocurrency between exchanges when they are looking for liquidity. If a whale were to sell all of their Bitcoins on a single exchange, the price impact would be high. In other words, the investor would significantly lower the price of Bitcoin on this exchange.
Instead, the whale can distribute the funds among the exchanges so that it can have sufficient liquidity. Of course, we don’t know for sure if this Bitcoin wallet is transferring funds for sale, as this is just speculation. Another reason investors transfer Bitcoin through exchanges is for security preferences.
The best way to secure Bitcoin is to keep it in a hardware wallet, which cannot be done by holding digital assets on an exchange. However, some exchanges, like Coinbase, hold investor funds in hardware wallets for them, adding an extra level of security to your digital assets.
Price action: Bitcoin has risen 3% in the past 24 hours.
See also: How to buy Bitcoin
Public Blockchain data from Twitter Whale Alerts.
This article was generated by Benzinga’s automated content engine and edited by an editor.