A total of nearly 1.3 billion Bitcoin (BTC) worth nearly $ 9 billion was put into action yesterday in a single hour. Despite this, bitcoin prices are currently stable at around $ 7,300, after rising briefly to over $ 7,500 yesterday.
According to Rafael Schultze-Kraft, co-founder of on-chain market research firm Glassnode, this is the highest hourly USD transaction volume in Bitcoin history. But who moved so much bitcoin around? And why?
According to Glassnode, this latest increase was mainly caused by the crypto-exchange Bittrex, which is a series of 21 transactions handled around 1.18 million bitcoins ($ 8.7 billion), each of which included around 56,000 bitcoins. The move will take place during the maintenance planned by Bittrex, during which the exchange will be updated on 5 December 2019.
Each of these transactions had a charge of approximately $ 0.00008 BTC, or approximately $ 0.60, meaning that Bittrex was able to move just under $ 9 billion for less than $ 12.50.
It is currently unclear why Bittrex has distributed Bitcoin worth nearly $ 9 billion. However, some have speculated that the stock market could upgrade their refrigerator. Such significant moves have historically been associated with cooling transfers, with Binance already dumping about $ 1 billion worth of Bitcoin into cold storage facilities in July.
Normally such a large transfer to a stock exchange would be considered a bearish signal as this could lead to increased selling pressure. Conversely, large stocks of Bitcoin exiting the exchanges are typically considered bullish, as this indicates a reduced supply. (The price of a coin is heavily influenced by supply and demand). Since this is only an internal transfer, it is unlikely that this will significantly affect the Bitcoin price action.