Specifically, on Wednesday an unidentified buyer bought the cryptocurrency worth $ 1.6 billion. Which led to a price increase in minutes.
By the way, the market’s attention is now back on Bitcoin in full bullish mode. Institutional interest in Bitcoin has also increased significantly.
Who bought $ 1.6 billion worth of Bitcoin on Wednesday?
According to CryptoQuant CEO King Young Ju, Bitcoin’s mad rush was sparked by an anonymous buyer. Which bought a quantity of Bitcoin through market orders.
Someone bought $ 1.6 billion worth of BTC through market orders in just 5 minutes. Short sales seem relatively smaller. This is more like buying whales, not cascading liquidations. ‘
“What is obvious is that this purchase did not come from US investors.”
As a fun fact, the last time such a large purchase was seen was when Elon Musk announced that Tesla had bought $ 1.5 billion worth of Bitcoin. Obviously, the price of Bitcoin immediately skyrocketed.
In this regard, Eric Turner, vice president of market intelligence at the cryptocurrency research firm Messari, said: “I think we will see an acceleration of companies looking to allocate resources to Bitcoin. Now that Tesla has taken the first step.
BTC price rally for purchase
According to South Korea-based Blockchain data firm CryptoQuant, someone or a group of people bought the large amount of Bitcoin on the spot market on centralized exchanges between 1:11 PM and 1:16 PM UTC on Wednesday.
$ BTC price surged by + 6.4% in less than 2 hours, what happened?
1. Someone (s) bought up $ 1.6B worth $ BTC via market orders in just 5 minutes
2. Bitcoin has decided where to go. New ATH is possible
3. Greed on the Crypto Market. FOMO started?
– CryptoQuant.com (@cryptoquant_com) October 6, 2021
The price of Bitcoin on Coinbase, rose sharply. Which led some to speculate that the US exchange was the platform where the transaction occurred.
In fact, according to King Young Ju, the purchase of Bitcoin could have started on Coinbase. Noting that “Coinbase Premium” rose sharply at the same time before falling again.
To better understand, Coinbase Premium, is an indicator that shows the gap between Coinbase’s BTC / US dollar (USD) pair and Binance’s BTC / USDT pair involving the Stablecoin Tether. When the number increases, it generally reflects stronger purchasing power at Coinbase.
However, analyst Willy Woo did not agree with this premise. Indicating that the purchase of Bitcoin came from Binance. Mainly, citing Blockchain data firm Glassnode.
“I have not seen any netflow coming out of Coinbase. And furthermore, the purchase is not that out of the ordinary compared to other exchanges. Purchases actually looked more solid on Binance. Coinbase was selling more than buying.
Similarly, Lucas Outumuro, head of research at IntoTheBlock, also said that the purchase came primarily from Binance.
Interestingly, CoinMarketCap expressed: “How do you prepare for the crazy crypto week ahead?” Leave your opinion in the comment box.
Finally, at the time of this writing, Bitcoin is worth $ 57,250, according to our Crypto Online tool.
I close with this phrase from Amir Taaki: “Bitcoin was created to serve a highly political intention. A free and uncensored network where everyone can participate with equal access.
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