A few analysts predicted at the beginning of the year that if the bull run of cryptocurrencies continues to the tail end of the year, many investors might start to cash out on their investments for early profits. Surprisingly, the recent upturn in fortunes of cryptocurrencies like Bitcoin and Ethereum might now start to hint holders with a quick eye for profits that this could be a time to sell. However, in a new report by Whale Alert, $1 billion worth of Bitcoin has just left popular crypto exchange Coinbase, as the predictions of analysts are beginning to become a reality.
No one knows why and where the Bitcoins were moved to
The detailed report by Whale Alert shows that about 13,204 Bitcoins have been transferred away from Coinbase into several wallets, with the transaction carried out in several tranches. The crypto monitors also confirmed that around 4,500 Bitcoins also left Coinbase a few hours after another series of transactions. The amount of Bitcoin in both series of transactions is estimated to be worth a billion-dollar, suspected to have come from Bitcoin wallets of prominent investors of the cryptocurrency.
Analysts have attributed several reasons why the huge amount of Bitcoin was moved from Coinbase to other financials. It could be that the wealthy owners of the Bitcoin were cashing out their digital assets or were taking them to other crypto exchanges. Another reason, suspected by whale alert, was money laundering, considering that the Bitcoins were moved to private and untraceable new addresses.
Sometimes last month, a similar transaction of huge Bitcoin worth $500 million was also moved from Coinbase. However, unlike this one, the Bitcoins were traded for money by their owner, who wanted to capitalize on the bullish market signal.
Are Investors eyeing quick profits?
In the past two weeks, a good look at Bitcoin, despite its sluggish start at the beginning of th year, suggests that the cryptocurrency is back to its brilliant best. However, the indications of that progress only show that the investors might now be looking to earn profits off the cryptocurrency before its fortunes dwindle quickly.
The institutional adoption of Bitcoin by many large corporations and firms, which had solely been profit-based, has also started to yield profits. Many analysts believe that major institutional investors of Bitcoin have recently started selling off their assets in a bid to balance the losses most of them incurred in 2020 due to the harsh economic impact of COVID-19.
On the other hand, we have Micheal Saylor of Microstrategy, who is willing to commit more funds into Bitcoin, as many enthusiasts believe the asset will reach $100,000 soon than predicted. However, the effect of early sales of the cryptocurrency by its holders has not been thoroughly analyzed. Still, analysts predict that this period could be a sale season, as the Whales now seem to be eyeing quick profits.