Experts are speculating on whether the large ETH cache moved by Coinbase is a bullish move.
A Twitter post sent out by Cryptoquant CEO, Ki-Young Ju, has revealed that the US-based Coinbase crypto exchange has transferred a total of 570k ETH coins from one wallet to multiple other wallets. However, the details of these transfers are still a bit scanty at the moment.
@Coinbase sent 570k $ETH to new wallets.
There’s no outgoing transaction yet, so not sure whether these are internal transfers or txns to custodian wallets for OTC deals.
The former is nothing but the latter is bullish. Will keep you posted. pic.twitter.com/XCWHITxUag
— Ki Young Ju (@ki_young_ju) July 7, 2022
No Outgoing Transactions
According to details noted by Young, the transfers seem to be just internal. There is still no outgoing transaction. Normally, outgoing transfers are destined to custodian wallets meant for OTC sales. OTC sales (or Over The Counter sales) are sales initiated by big spenders willing to buy large aches of cryptos directly from the exchange as opposed to buying via exchange trading contracts.
Young gave the addresses involved as:
https://etherscan.io/address/0x8b9861eea3b935f800561ad20b104383fd16da2b
https://etherscan.io/address/0xce0628fe851d40b35e7490c0c91c18720b694af4
https://etherscan.io/address/0x541680cbc8b8ffa13d9edff0a5b0882b85127b02
https://etherscan.io/address/0xe20bebb11e1335db7f6ea96987ff47fe09cd6985
Point to note: The above-listed are just part of the multiple wallets used by Coinbase.
Zero Effect Vs Bullish
Now, the bone of contention is whether the transferred assets could be meant for later sales or internal storage.
Speaking on that, the Cryptoquant CEO clarified that internal transfers are often just that. Nothing happens since they don’t create any impact on the market. The exchange could simply be taking measures to split up its stash for security reasons.
On the other hand, external transfers to OTC wallets mean that the assets are being availed for sale. Such a large cache of over half a million coins of such high value as ETH would ultimately create some waves in the market. Besides, according to Young, the stash may be meant to be sold to someone with deep pockets. Such a “moment” who can afford to buy $750 million worth of ETH isn’t a small fish in the game and would make them quite a huge force in the ETH market.
“Think about who can even buy $750M worth ETH at once. They are the new captain of the ETH ship.”
Think about who can even buy $750M worth $ETH at once. They are the new captain of the ETH ship.
— Ki Young Ju (@ki_young_ju) July 8, 2022
Yesterday as TheCryptoBasic reported 220K Ethereum were Moved To Exchanges In One Day, which was the Highest ETH exchange Inflow Since August Last Year.
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Source: https://thecryptobasic.com/2022/07/08/new-captain-of-eth-ship-as-coinbase-moves-57000-ethereum-worth-750m-at-once/?utm_source=rss&utm_medium=rss&utm_campaign=new-captain-of-eth-ship-as-coinbase-moves-57000-ethereum-worth-750m-at-once