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Another red flag: 7-year-old leaves with 10,000 BTC cryptopolitan

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Another blow to the crypto market when it was still suffering from the crashes of FTX and Luna. On Wednesday, November 23, 2022, news rose that more than 10,000 BTC had been moved from the 7-year-old BTC e-exchange to HitBTC. You may be wondering what the connection is between moving 10k bitcoin and a bearish market? But there is one that is more dangerous than you can imagine.

According to crypto experts, when such a huge amount of BTC is transferred at once, they try to sell them all at once and if they do this time, the BTC market may fall below $10,000. It will be more dangerous than most people can imagine. However, you could argue why they would do this at 16,000 BTC if they had enough opportunities during the 30-69 bull run?

The answer is simple, if they sell for $16,000, they will still make more than 55x profit, because these coins were purchased in January 2015 when BTC was only $297. And today it’s $16k which is approx. PNL is 5.594%. News of these transferred bitcoins made headlines when two unknown accounts sent 10,000 BTC worth $165 million from BTC-e.

What was BTC e?

BTC-e was one of the top crypto exchanges until 2014, but it was siphoned by over 744,408 BTC and then immediately shut down. The operator Alexander Vinnik was arrested in this case in 2017 and nothing has come out of this case since then. All of his funds were seized by the Federal Bureau of Investigation (FBI) in 2017 after so many allegations of money laundering and fraud.

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However, according to Chainalysis, the sub still held a “significant amount of bitcoin” at the time of its closure, in addition it employed more than 30,000 bitcoins which were decommissioned in April 2018.

transaction time

The timing of the transaction is very important as the crypto industry is suffering from the latest controversies of FTX and Luna crash and this may affect the overall feelings of crypto users and investors. In this case, around 08:38 UTC, 300 bitcoins were sent from one wallet and 3,500 received by another wallet. Those funds were further divided and funneled into multiple wallets that could not be linked to a known custody service.

However, there is a more optimistic group of investors and crypto users who view this transaction from a different perspective. The owner of the wallet may have sent money directly to the wallet A person can deposit money into another own wallet, send it to another person, or withdraw money through an informal over-the-counter broker. The remaining 6,500 remained.

Similar sentiments were shared by a crypto user on Twitter and Ki Young Joo, co-founder and CEO of CryptoQuant.com, responded, “I’m not saying they’re going to sell all those 10,000 bitcoins. We will never know when they will sell the rest of the BTC. What we do know is that 10,000 BTC was moved by the criminals and the potential sell-off could be liquidity as they sent 0.6% of their assets to exchanges.

In addition, he urged the HitBTC platform to suspend the transactions of these unknown accounts in order to prohibit further sales of these bitcoins.

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final thoughts

Every morning the crypto news industry receives bad news about the crypto market and you can see the overall impact of that news on the market. The market has been in a bearish state since last year on bad news. If this trend continues, we could be facing a very bad crypto future, but such critical situations are not new to the crypto industry.

Source: www.cryptopolitan.com

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