Bitcoin (BTC): 'Whales Exit' 3 Hours Before Crash...Transfer to Ethereum (ETH)

▲ Bitcoin (BTC), Ethereum (ETH), Cryptocurrency Whale/AI Generated Image

A Bitcoin (BTC) whale disposed of 866 BTC and switched to 26,924 ETH approximately 3 hours before the market crash.

According to Bitcoin.com on September 16 (local time), on-chain analytics firm Lookonchain detected a large transaction from the 0x4553 wallet. The wallet sold 512 WBTC worth $38.64 million and 354 cbBTC worth $26.73 million. Subsequently, it purchased a total of 26,924 ETH (approximately $64.57 million). The transaction occurred about 3 hours before the US Senate's vote on the US Cryptocurrency Market Structure Bill.

The Senate recorded 49 votes in favor and 50 against the cloture vote for the bill. It fell short by 11 votes from the 60 votes needed to proceed to full debate. Not a single 'yes' vote came from the Democratic party. Immediately after the vote, Bitcoin fell below $75,000 for the first time since August 20.

The derivatives market also experienced significant turmoil. Approximately $289 million worth of leveraged positions were liquidated within an hour before and after the vote. About 91% of these were long positions. The total liquidation volume over 24 hours reached $771.82 million, with over 120,000 investors facing liquidation.

The whale's conversion to Ethereum also garnered attention in the ETH/BTC ratio. This ratio was approximately 0.0317, having risen by over 32% since its June low of about 0.02525. Bitcoin.com suggested 0.03213 as the next major resistance level. If it surpasses this, 0.03426 would be the next resistance zone. However, it was noted that the overall market trend cannot be determined solely by a single wallet's transactions.

Fund flows were mixed. On September 15, Bitcoin spot ETFs saw a net outflow of $450.4 million. Fidelity's FBTC experienced an outflow of $214.8 million, and BlackRock's iBIT saw an outflow of $161.7 million. On the same day, Ethereum spot ETFs also recorded a net outflow of $142.3 million. The failure of this bill did not change the digital commodity status of Bitcoin and Ethereum, according to the joint interpretation issued by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) last March.

[Article Summary]

-A whale wallet disposed of 866 BTC and purchased 26,924 ETH (approximately $64.57 million) about 3 hours before the US Senate vote.

-The US Cryptocurrency Market Structure Bill received only 49 votes in favor in the Senate, and Bitcoin fell below $75,000 immediately thereafter.

-Within an hour before and after the vote, $289 million was liquidated, with approximately 91% being long positions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*