There is tremendous whale behavior in Bitcoin and the market in general, where whales controlling millions of dollars’ worth of Bitcoin and Ethereum deposits are transferring their assets to exchanges immediately following the most recent U.S. Federal Reserve rate cut.
Bitcoin Whale Owen Gunden Sells Holdings
Bitcoin whale and early adopter Owen Gunden, holding more than 10,000 Bitcoin, has sent around 395.8 BTC to Kraken in less than eight hours, which is about 43.7 million US dollars at present.
Reports by SpotOnChain indicate that Gunden has sold 2,587 BTC worth about 289 million during the last nine days. His average selling price is $111,546 per Bitcoin, leaving 7,150 BTC, which are worth around $793 million, in his wallet.
The deposits seem to go hand in hand with the general market consolidation, with Bitcoin priced at about $110,600, dropping from the price level of $113,500 after the Federal Open Market Committee (FOMC) conducted the most recent reduction in the rate by 25 basis points.
The most important level of support for Bitcoin is $107,000, and the resistance will be $116,000.
Ethereum Whale “0x550” Moves Entire Position
Simultaneously, a big ETH holder, known as whale 0x550, sold his entire amount of around 10,000 ETH to Binance two hours ago, valued at approximately $39.1 million.
The position is in a significant loss of nearly 7.52 million, or approximately 16%, following a two-month hold. The present Ethereum market price is close to $3920, which is showing some weakness following a downward trend that the market hit after the FOMC.
The support happens to be approximately $3,800, and the resistance is $4,200. The coordinated activity of these whales represents the changing mood of large holders, who tend to be early signs of the tide in the market.
Market Signals and Potential Impact
The decision by the prominent Bitcoin and Ethereum investors can be seen as evidence of the prudent attitude towards the risk assets in the current macroeconomic uncertainty.
As the move by the Fed to lower rates may help to aid liquidity in the long run, there is still high volatility in the short run as traders support risk exposure.
The whale sell-off will temporarily burden market confidence but also find some opportunities to purchase shares in the long-term investors as prices move to critical support levels.
In the meantime, the focus is on whether Bitcoin will be able to stay above $110,000 and whether ETH will be in a position to protect the $3800 level; these are the two important indicators that may influence the short-term market trend.