Whales have just moved over 50M USDT from Huobi and $8M from Bitfinex onto Binance. Many are claiming that this may be a buy signal indicating that the local bottom is in.
It’s not often we hear about millions of dollars worth of cryptocurrency being moved between exchanges. That’s why a recent deposit into Binance originating from Huobi is raising eyebrows. One user has just moved 50,399,967 USDT to Binance, as picked up by Whale Alert (@whale_alert).
— Whale Alert (@whale_alert) October 6, 2019
Although the bot tweeted that it was transferred from an ‘unknown wallet,’ it was actually from a hot wallet on Huobi. This means that someone withdrew $50M and directly deposited it into Binance, for whatever reason.
As another user, Samuel JJ Gosling (@xGozzy), pointed out, a similar transfer happened again around the same time. Whale Alerts also picked up on a deposit of 8,196,029 USDT onto Binance, withdrawn directly from Bitfinex. The close timing of this deposit as the one from Huobi should cause us to pause — could they be related?
Something strange going on… both recent calls are directing their funds to @binance
— Samuel JJ Gosling (@xGozzy) October 6, 2019
It’s rare we see millions of dollars in funds withdrawn from an exchange’s hot wallet to another exchange directly, let alone twice in one day. In this particular case, almost $60M has thus been deposited to Binance from funds that were originally from Other exchanges. The reasoning, of course, still remains unknown. Could a major player be ‘buying the dip’ or is this a false buy signal to make people set more longs in the hopes of liquidating them?
Most in the replies to Whale Alert’s original tweet, however, seem to be elated at the prospects that this may be a proper buy signal. It seems cynical that this would be a fake-out. Thus far, the market has not responded much. Most major cryptocurrencies appear to be holding steady despite the recent volatility.
These deposits come only days after $26M was moved on and off OKEx in three transactions.
Is this $50M deposit into Binance a buy signal? Let us know your thoughts below in the comments.
Images courtesy of Twitter.