On Thursday, a substantial $1.3 billion worth of USD Coin was transferred from notable whale addresses to the crypto exchange Coinbase, potentially signaling a significant opportunity for Bitcoin and Ether, according to market analysts.
“USDC moving onto exchanges is a giant buy signal, as the saying goes on the internet ‘money printer go brr,'” remarked crypto trader Blockchain Mane.
These transfers, totaling $1.3 billion and ranging from $150 million to $350 million, occurred on April 25 at 08:15 UTC, as per Etherscan data.
Such sizable deposits of stablecoins on exchanges are often perceived as bullish indicators, suggesting potential large buy orders in the near future.
Conversely, significant crypto deposits on exchanges may indicate a looming sell-off, prompting caution among traders.
“If this is indeed a whale buying and at current prices then yes, it can have a big impact on the price of the asset they are buying, which at that level is almost certainly only Bitcoin and Ethereum,” noted crypto commentator Lark Davis.
Nevertheless, analysts caution that whale movements are not foolproof signals for the crypto market.
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“A lot of attention gets paid to whale movements, but we never really know what they are doing,” remarked Davis.
“$1.3B is a good amount of capital but it depends on where this is getting deployed,” added crypto trader and YouTuber Brian Jung.
Davis emphasized that whales might opt for limit orders instead of instant purchases, thereby establishing stronger support levels for the cryptocurrencies they invest in.
“A limit order will go in, creating a buy wall that will act as a layer of price support for the assets,” explained Davis, while also stressing that the impact of such large transfers on the market is “never definitive.”
Meanwhile, Jung speculated that a significant influx of funds into a single crypto token could “shift positively,” potentially boosting the prices of other cryptocurrencies due to increased liquidity.
However, he expressed doubts about the practicality of such a strategy due to the risks of overexposure.
Despite the significant fund movement, the crypto market sentiment has slightly declined, with the Fear and Greed Index dropping from 64.04 to a neutral level of 59.78 over the past 24 hours, indicating a shift in traders’ focus away from accumulation.
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