The transaction has caught the crypto community’s attention, involving a mysterious crypto whale who took a round trip with 1,850 BTC, resulting in a staggering $13 million loss within just six days.
According to Lookonchain, six days ago, the whale withdrew 1,850 BTC worth $188.7 million from Binance at $101,998. Some hours ago, the whale deposited the entire 1,850 BTC stash to Binance, which was worth $175.7 million at the time of the transfer, with Bitcoin’s price at $94,963, resulting in a $13 million loss over six days.
Withdrawals from exchanges often signal to buy, while deposits indicate an intent to sell.
The 1,850 BTC withdrawal may have been made with positive expectations of the Bitcoin price, but the whale reversed course and redeposited the exact 1,850 BTC back to Binance, albeit at a considerably lower price of $94,963 per BTC, for a total of $175.7 million. The move effectively locked in a $13 million loss, a baffling decision that has sparked speculation about the whale’s intentions, which remains unknown.
A potential explanation is that given the current market uncertainty, the whale might have sold to avoid further losses. It is also possible that the whale miscalculated the entry and exit points, leading to an unintended loss.
After a brief consolidation between $93,600 and $95,400 over the weekend, Bitcoin reached highs of $95,900 in Monday’s session, but bulls encountered resistance, and the price fell sharply.
On the macroeconomic front, this week will provide investors with a clearer picture of the status of the economy following last week’s blowout jobs data, which pushed markets lower. The stronger-than-expected nonfarm payroll report fueled concerns that the Federal Reserve may act cautiously going forward, casting doubt on additional interest rate cuts.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
