The price of Bitcoin has been negatively impacted by the heavy selling activity that has dominated the market recently. Despite investor expectations of a reprieve, it appears that sellers are not finished yet, and a significant Bitcoin sale transaction has caused even more market turmoil.
Whale Dumps $1 Billion Worth Of Bitcoin
The cryptocurrency community was notified on X, where Whale Alert posts (previously on Twitter), about a significant Bitcoin sale. This transaction moved a large amount of Bitcoin, specifically 16,276 coins, which equated to approximately $1 billion in value at the time of the transaction.
Large transactions aren’t unusual, but their direction can make them bullish or bearish. Transactions where cryptocurrencies move from centralized exchanges to individual wallets can be bullish because these actions typically indicate that investors are holding onto their coins for long-term storage and not intending to sell.
In contrast, moving Bitcoins to centralized exchanges may indicate a bearish trend as it might suggest investors are looking to sell their coins. An example is the large $1 billion Bitcoin transfer to Binance, involving 16,276 BTC.
Investors were naturally concerned and discussed extensively the potential effects of this significant sale on the cryptocurrency’s price following the transaction. But rest assured, the explanation behind it would emerge shortly, bringing calm to the markets once more.
Binance Says 16,276 BTC Transaction Was SAFU Fund Conversion
Around Thursday morning, Binance, the leading cryptocurrency exchange globally, acknowledged receiving a transfer of 16,276 BTC. According to reports, these funds originated from Binance’s emergency insurance fund called the Secure Asset Fund for Users (SAFU).
Based on the statement, Binance intends to transform its insurance fund into stable coins to shield it from Bitcoin’s price instability. The exchange emphasizes that keeping a balance of $1 billion in this fund ensures adequate protection for users’ funds on their platform.
The exchange explained its reason for selecting USDC as their preferred stablecoin by stating, “Using a reliable, audited, and transparent stablecoin like USDC for SAFU not only boosts trust but also maintains its value at $1B.”
Bitcoins have been changed into US Dollar Coin (USDC), and now, the SAFU wallet holds a USDC balance amounting to one billion dollars.
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2024-04-18 16:16