Crypto

Anonymous Cryptocurrency Wallet Transfers $22 Million In Bitcoin To Bitstamp

Bitcoin BTC

What happened was this: Bitstamp just received a $22,896,346 Bitcoin BTC deposit from an unidentified bitcoin wallet. The bitcoin wallet address associated with this transaction has been determined to be:

bc1qz6emcwl6lff8e8a35g9e7tusyyqttxphqpngyjnr7m0pxnmdjh8qwmzc9a

What’s at stake: Transferring cryptocurrency from wallets to exchanges is usually regarded as a pessimistic indication. The majority of high-net-worth bitcoin traders keep their money in a hardware wallet, which provides superior protection to cryptocurrency exchanges. Investors’ private keys are stored offline in hardware wallets, which protects their digital funds from online hackers.

When whales deposit bitcoin on an exchange, they are often looking for liquidity. Investor is unlikely to keep their cryptocurrency on Bitstamp because the security risks of storing big sums of cryptocurrency on an exchange are higher than storing these assets in a hardware wallet. This Bitcoin whale is most likely aiming to either sell Bitcoin or trade it for other altcoins.

Related:  SEC Delays Judgment on Bitwise and Grayscale's BTC ETFs

Price Action: Bitcoin’s price has dropped by 2% in the last 24 hours.

The Author

Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.