Over the past few days, crypto whales have transferred a total of $1.3 billion in stablecoin USD Coin (USDC) to the largest US exchange platform Coinbase. Analysts view their actions as a potential buy signal.
The massive influx of funds occurred as a result of synchronized transactions from five different addresses, sparking speculation in the crypto community about an impending rally.
Whale addresses can belong to one owner
The details of these transactions indicate a coordinated effort among cryptowhales.. The transfers were almost simultaneous, suggesting that the five addresses were controlled by one entity.
Specifically, address 0x45a sent 295.86 million USDC to Coinbase. Then wallets 0x29d and 0x41d each transferred 350 million USDC, and addresses 0xbdE and 0xeC9 contributed 150 million USDC each.
Before sending stablecoins to the exchange, wallet 0xeC9 received funds from another wallet, 0x747. Interestingly, 0x747 himself withdrew USDC from Coinbase around mid-March, when the market reached a local peak.
Wallet transactions 0x747. Source: Etherscan
This cyclicality makes it more likely that these crypto whales took profits several weeks ago and switched to self-custody of assets in USDC. A return to crypto exchanges may indicate their confidence that the market has reached a local bottom and is now preparing for a new bullish surge.
“Transferring so much USDC to exchanges is a giant buy signal, as they say, the internet money printer is going crazy,” said trader Blockchain Mane.
Well-known crypto investor Lark Davis agreed with his opinion, noting that whale purchases can have a huge impact on the price of their chosen asset.
However, despite the hype, experienced analysts advise caution. Brian Jung, a crypto trader, believes that the effect largely depends on how and where crypto whales send funds. He suggested that if capital were concentrated on one, smaller altcoin, this could dramatically affect its price. However, he doubts that a sophisticated investor would take such a risk.