U.Today – Although Saturday and Sunday are traditionally days of rest for traditional financial markets, the world of cryptocurrencies never sleeps, especially on weekends. Therefore, the past 24 hours were once again accompanied by a series of events in the market and behind the scenes, in the on-chain sphere.
One such event was a sudden withdrawal of over 1,734 BTC, equivalent to approximately $103.62 million, from the main exchange BitGo to the unknown wallet “bc1qzqp5.” The latter is a completely new entity and had no transaction history before, according to data from Arkham Intelligence.
Now, this unknown anonymous whale is sitting on a seven-figure stash of . Interestingly, before the cryptocurrency arrived in this wallet, this amount of BTC was stored in another wallet, “bc1qg9ucy,” which received it from BitGo three weeks ago. We cannot rule out that both addresses belong to the exchange itself.
However, there is no information on this and it does not mean much. What really matters is the perception of market participants on this development.
According to common sense, currency withdrawals from the stock exchanges are considered bullish events. What is more interesting is that this movement occurred in anticipation of the Federal Reserve's interest rate decision on Wednesday.
This decision is especially important because it could mark the first rate cut in years, after years of monetary tightening. At the moment, market participants are guessing whether the cut will be immediate by 50 basis points or just 25 basis points.
All of these factors and speculations are causing volatility in the cryptocurrency market. If this whale is indeed a buyer, then its bias is likely leaning towards the bullish consequences of the Federal Reserve rate decision.
This article was originally published on U.Today
