Last week, Bitcoin suffered from an unexpected market downturn as a global economic meltdown seems to be looming over the world in the aftermath of widespread panic due to COVID-19. The price crashed spectacularly, dipping heavily downwards from $7200 to a low at $3,850. Currently, the price has rebounded back to above $5,000. Amid the chaotic time frame, 2,000 BTC currently worth approximately $10M was transferred from an unknown wallet to Luxembourg-based crypto exchange Bitstamp. Whale Alert, a tracking channel for large crypto transactions, highlighted this transfer in a tweet:
It is still unclear who is responsible for the transfer, but a rumour has emerged in the community that the party behind this transfer could either be traders from BitMEX or PlusToken scammers. For the former, the reason might be the sell-liquidations that occurred due to the recent price drop, while the latter could be due to the scammers having not yet moved their fraudulent Bitcoins since last week.
Whatever the reason is, the fact that transferring such a large number of coins to an exchange is alarming as it means the asset is ready to be traded, and no one seems to be able to make bullish trades at this time.
It is believed that something bad always happens whenever funds get moved from an unknown wallet to a major crypto exchange. These 2,000 Bitcoins worth $10 million can be dumped on the market and accelerate the bearish trend. Looking at the present global market situation and volatility of the prices, some people in the community believe that the price scenario might continue to go lower.
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