It seems that moves are being made by major players in the market to capitalize on this sudden crash. One individual just moved $10M USDT from Tether to Poloniex, presumably to make a purchase.
The market seems to be in a panic, but behind-the-scenes it appears that some entities are taking advantage of the dip. Whale Alert has just documented a move of $10M to Poloniex. The transfer was made from Tether Treasury to the exchange and set off alarm bells on Twitter.
— Whale Alert (@whale_alert) September 26, 2019
Yesterday, Coinbase’s stablecoin USDC also minted another $25M which will likely be injected into the market as well. The minting set off the Whale Alert bot.
Altogether, these large transfers and new stablecoin minting indicate that something is brewing in the background. At the time of writing, Bitcoin has partially recovered from its plummet today. Despite dropping down close to $7,800 today, it has since regained some lost ground and is trading at $8,164 at the time of writing.
Oftentimes, the strategy for whales is simple: liquidate BTC through major sells to create a cascading effect throughout the entire market. As more and more people panic sell, the price drops and the whales ‘buy the dip.’ However, this current dump has also been heightened by uncertainty surrounding Bakkt and the sudden drop in Bitcoin’s hashrate, the causes of which are still up for debate. In fact, the entire price collapse started just a day after much-hyped Bakkt futures exchange went live.
It remains to be seen whether these tens of millions of dollars will have an impact on short-term price. One thing is for sure, however: someone is not missing the opportunity to buy this dip.
Do you think that Bitcoin is turning bearish until 2020? What do you see happening in the weeks to come? Let us know your thoughts in the comments down below.
Images are courtesy of Twitter, Shutterstock.