Bitcoin is easily the poster child of the entire crypto market. Since it essentially started out the entire crypto trend, it only makes sense that it would be the biggest cryptocurrency that people can find on the market. And with a total market capitalization of $1.2 trillion, it makes up about 43% of the entire crypto market. When considering the overall dominance of the cryptocurrency and the very volatile market, it only makes sense that there will be people who own large chunks of this specific cryptocurrency. And one of these people has recently sent out about $1 billion in Bitcoin to another wallet.
Unlike regular transactions, it can be almost impossible to track down who was on the other end of each of these transactions. Therefore, people cannot find out where the money was going or who it was going to. All that people can find out is that someone sent over $1 billion in a single transaction.
Now you may be wondering why it is important if a massively wealthy individual just sends cryptocurrencies from one wallet to another in a single bound. However, this is more than just about the money that they are sending. This is also the type of person who is sending the money, and how they can destabilize the entire market.
A good place to start with would be to explain who these people are. People who buy a lot of Bitcoin or any other cryptocurrencies are called whales. These whales hold enough of the cryptocurrency’s tokens to hold leverage over it and easily take over when and how the token will increase in price. It is a very powerful tool that they wield, which they can use how they please, usually for their own interests.
So if there is a whale in the crypto space that owns almost a full percent of the value of Bitcoin, it can hold tremendous power over the market. If they were to take their investment out, they would make the price for cryptocurrencies fall by a landslide. This sharp decline of the value of cryptocurrencies will be able to shake the market down to its core, which means that prices for the entire market could drop by a significant value.
It can only take about $30 million worth of selling pressure for Bitcoin to see a 2% drop in its overall value. Which means that there could be very serious consequences if this whale decides to leave the market?
However, very little evidence shows that this investor is looking to sell off their crypto. Instead, since the money did not go to a separate exchange, it is very easy to believe that the investor was transferring money for increased security.