A total of 7,073 Bitcoin (BTC), presently valued at $330 million was moved to an unknown wallet by an anonymous user on February 27.
The transfer is coming following the large slump in Bitcoin price from a high of $58,000 to $44,000 within few days. The price has recovered slightly within the past 24 hours, climbing to $47,200 at the time of writing.
Crypto analytics platform Whale Alert revealed that the transaction was recorded on Blockchair.com and the total transaction value was about $337 million. According to the data, the total transaction fee for the entire transaction was $5.65 in Bitcoin.
The rapid price movements of the world’s largest cryptocurrency by market cap have been considered with more frequent large Bitcoin transfers from crypto whales. Bitcoin has lost about 30% since the past week and some institutional investors are looking to move their funds before the coin goes far lower than its present value.
The market capitalization of Bitcoin has also dropped to $880 million after crossing $1 trillion last week.
There were also two major Bitcoin transactions last week involving 4,509 BTC. On Saturday, two anonymous users moved 3,130 BTC and 2,379 BTC respectively from crypto exchange Coinbase to anonymous crypto wallets.
Bitcoin supply dropping speedily
Blogport, in recent data, revealed that the total number of Bitcoin supply in top exchanges is dropping rapidly. The data revealed that users have pushed about 25,000 Bitcoin worth more than $1 billion from Coinbase within the past week. Additionally, there has been significant Bitcoin outflow on Bitfinex during the same period. As it stands, Bitcoin supply at exchanges is at its lowest level in three years.
Besides, JP Morgan recently stated that there is high liquidity in Bitcoin, which is a major issue for investors. According to him, a little move can have a major impact on the price of the crypto asset. It has also highlighted why some individuals are still critical of the crypto asset as a strong investment tool, looking at its high volatility at any slight provocation.
Demand for crypto assets is still high
The institutional traders are deliberately trying to create a supply shortage by transferring Bitcoin and other cryptocurrencies from exchanges to cold wallets. The recent market slump in crypto assets has not perturbed both retail and institutional traders in the market.
The demand for crypto assets has kept surging but the market is now at a crossroad regarding price movements. Only a few crypto assets are still performing excellently well at this period.