The Chinese crackdown spurred transactions in the chain massively, as cold wallets moved over $ 3 billion in Bitcoin and 800,000 ETH.
After China cracked down on cryptocurrency trading, exchanges began restricting services to local users. FUD spread quickly, and many traders wondered what penalties they would face if they break the latest ban.
Against this background, Bitcoin and ETH whales hectically moved coins from the addresses of the Huobi exchange, which was founded in China, last weekend.
Twitter account Whale Alert sounded the alarm when Bitcoin whales transported about 22,000 BTC (about $ 952,215,000 at the time of writing) from Huobi to other locations and unfamiliar purses. The money transfer began at 10:43 am (Synthetic Team time) on September 26th.
The source: Whale alert
ETH whales are also busy. At around 1:49 p.m. on September 26 (UTC), whales moved approximately 800,000 ETH in waves of 100,000 ETH (equivalent to $ 2,403,039,390 at press time) from Huobi to other locations and an unknown wallet.
https://twitter.com/whale_alert/status/1442018604980097025?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Although there are many high quality transactions, they mostly come from a few wallets that move multiple times.
The source: Etherscan
On-chain actions by the Bitcoin network show that at least 72,999 BTC ($ 3.1 billion) was transferred on September 26. These activities come from two large wallets, and one of them could be Huobi’s Cold Storage Wallet. While the number recorded by on-chain analysts is 72,999 BTC, the third analyst states that the total amount that the “1Njh” wallet has received at least at the time of writing is a total of 104,999 BTC.
Source: oxt.me
According to data from oxt.me, at least one of the two BTC addresses was marked twice as a Huobi Cold Storage Wallet. Additionally, this move was spotted by btcparser.com’s analytics software and the Telegram Gold Found In Sand research team. A member of Gold Found In Sand’s on-chain research team said:
“Today our second analyzer detected 72,999 bitcoins in motion. No panic. This is the exchange where Huobi transfers their money. But what happens next is not entirely clear. Funds from the “1Njh” wallet were withdrawn in transactions of 2,000 BTC and each transaction had a recipient of approximately 1,800 BTC, the rest was spread across various small wallets.
Perhaps this is a new fund distribution mechanism. What if there was a government response to the next rejection? In any case, our analyzer continues to monitor the situation. And all these movements are clearly visible from the comprehensive view of the third analyzer. ”
Blockchair statistics show an initial transfer of 72,999 bitcoins.
The researcher noted that the recent moves are likely to be related to some extent with the announcement made by the Chinese government.
72,999 Bitcoin moved again, but in steps of 2,000 BTC.
“Right. We know the Chinese government has made many similar announcements. But such a move only happened today. Funny.”
At the same time, the researcher emphasized that the special thing is not only the way in which the money is moved, but also how the coins are transferred.
“What we find strange is that the amount is withdrawn in 2,000 BTC transactions, but even in those 2,000 there is an address that gets almost +1,800 coins and dozens of smaller addresses that get the rest. We are looking forward to these smaller addresses. Is it the withdrawals made by existing Chinese customers? We are only speculating, we have not yet determined exactly, “concluded the researcher.
However, whales are not necessarily HODL at the moment. Glassnode data shows that ETH inflows have just hit a one-month high of 12,342,276 ETH, based on a 7-day moving average.
Volume of ETH inflows into the exchange | The source: Glass knot
However, if you look at the daily on-chain exchange on September 26th, it is the Glassnode data shown $ 629.6 million in BTC and $ 590.5 million in ETH left the exchange. Both have negative net flows of more than $ 100 million each.
In August of this year, Huobi recorded a transfer of up to $ 740 million in bitcoin. However, whales have recently moved even more BTC and ETH through this exchange.
As reported by Bitcoin Magazine, investment strategist Raoul Pal suggested that China’s recent ban could be a way to get rid of cryptocurrencies before the country introduces its digital yuan (CBDC). China’s CBDC is entering the pilot phase in which four cities are participating. The government aims to introduce CBDCs in time for the Beijing Winter Olympics in February 2022.
Huobi Global said yesterday it has “stopped account registration for new users in China” and will “phase out existing user accounts in China by 2022”. Binance has also prevented users from registering a Chinese phone number. Binance, Huobi and OKEx were previously blocked by Chinese search engines.
At the time of writing, the Bitcoin Fear and Greed Index recorded a value of 27. Meanwhile, the index for ETH was slightly higher at 34. Both signals fear.
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