Bitcoin Whale Dumps 5000.01 BTC; BTC Dominance Drops

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  • A Bitcoin whale transferred 5000.01 BTC worth $100 million to Kraken.
  • There is a decrease in the reserve balance and the participants let off their HODLs.
  • The drop in dominance is never an indicator of the BTC price’s fall.

Reports revealed that on September 5, 2022, at 04:50 a.m. (UST), a Bitcoin whale transferred 5000.01 BTC worth $100 million to Kraken, a Bitcoin trading platform. The wallet was initially created and the bitcoins were added to the account in 2013.

The Chinese crypto journalist, Colin Wu, tweeted:

5000.01 BTC at 04:50:38 (UTC+8) on September 5th to the Kraken, which is worth about The Bitcoin whale address (18xGHNrU26w6HSCEL8DD5o1whfiDaYgp6i) transferred out $100m now. The wallet was created and bitcoins were transferred to this address in 2013.

The overall analysis showed a reasonable number of participants buying the coins for the past few weeks. But the same notified a decrease in the exchange reserve balance. Anyhow, the participants are letting their HODLs off.

CryptoQuant released a graph on the Bitcoin Exchange Reserve which stated that the exchange reserve value had elevated to $2.316 million BTC from a value of $2.296 million BTC that was marked on August 30, 2022, implying the rising pressure in sales.

Source: CryptoQuant

Interestingly, the deflection in Bitcoin’s flow determines whether the asset is undervalued or overvalued depending on the ratio between the current price and ‘stock-to-flow’. An asset is stated as overvalued if the deflection is greater than or equal to 1 and undervalued if it is less than 1.

According to the findings from Glassnode, a blockchain analytics digital platform, it is indicated that Bitcoin’s stock-to-flow deflection has reached as low as an ATL of 0.188, suggesting it is undervalued.

It is to be noted that Bitcoin’s dominance has dropped from 48.45% to its maximum low range over the past few weeks. However, the drop in dominance doesn’t suggest the fall in Bitcoin’s price. Instead, it is a reminder of other coins moving at a greater pace.

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