An unknown cryptocurrency wallet transferred $22,326, 837 ETH to Binance exchange. This transfer is connected to the ETH wallet address: 0x3f9c8a81f23f871ca7165fa19f51d9afdbd0c86b. Transfer of such a large amount matters because it indicates upcoming bearish trends.
Transferred by High Net Worth Traders
This type of high-value trading is generally done by high-net-worth cryptocurrency holders. It is a bearish indicator. Any abnormally large transfer of cryptocurrency from a wallet to an exchange indicates this signal. High net worth traders holding cryptocurrencies move their funds to hardware wallets because those devices have better security compared to exchanges. A hardware wallet stores the private keys of an investor offline, offering a higher level of security for storing digital assets. It prevents hackers from accessing crypto assets.
Searching for Liquidity
When ethereum is transferred by whales in large amounts to exchanges, it indicates they are searching for higher liquidity. There is no intention to hold the crypto at the exchange because the security risk increases after a large amount of cryptocurrency has been moved to an exchange. Different types of data related to cryptocurrency have become known to everyone. It is possible this whale has plans to sell ethereum or trade it with other altcoins.
Whale Alert sources publicly available blockchain data. It keeps track of all transactions taking place on different blockchains. Whale transaction data is saved in its database, which has thousands of addresses of exchanges, people and companies. Artificial intelligence is used to regularly update this data. Whenever any anonymous wallet moves ETH to an exchange, data related to this transaction becomes visible and Whale Alert issues an alert about it through its Twitter handle. This data is useful for ethereum investors. They can see the signs of a bearish signal. However, a crypto investment decision cannot be based solely on this data. Investors have to check many other data and factors before taking any crypto decision.