- Babylon BTC staking protocol saw the unstaking of a massive 14,929 BTC.
- This follows April 4’s unstaking where 256 BTC were unstaked in one day.
- BTC saw a temporary pullback after the unstaking, retesting the 20-day EMA.
The crypto market saw a huge Bitcoin move Wednesday when around 14,929 BTC, worth approximately $1.26 billion, was unstaked from Babylon, a popular decentralized Bitcoin staking protocol.
On-chain data platform Lookonchain noted the event occurred around 10:30 AM UTC. The unstaked Bitcoin (BTC) was split across multiple addresses – a pattern often hinting at strategic moves by a large entity, possibly an institution.
The unstaking comes on the heels of Babylon’s recent $600 million airdrop of its native token, BABY, to early users. Smaller BTC unstaking amounts were already observed following that airdrop.
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For instance, Bitfeed developer Mononaut reported 256 BTC unstaked on April 4 alone, consuming significant Bitcoin blockspace. Now, the total BTC staked on Babylon plunged to just 31,701 BTC after this latest withdrawal, according to data platform BlockTempo.
“That’s a serious move. Could be rotation, risk off or just getting liquid… either way, someone’s playing with size. Keen to see what follows,” noted market observer Ryzz on X.
How Did Bitcoin Price React to the $1.26B Withdrawal?
Unstaking a billion-dollar position isn’t a casual move. It typically signals a strategic shift in market posture—possibly from staking for yield to prepare for liquidity.
Immediately after the news broke, BTC pulled back from its local high of $85,428.28 and dipped to test the 20-day EMA at $83,250—a key technical support that, as of now, is holding firm, according to the data from CoinMarketCap.
Looking at the charts, the nearest support is at the 20-day EMA near $83,250 wth deeper support near the lower Bollinger Band (~$77,948).
Immediate resistance lies around the middle Bollinger Band at $84,091 and then the upper band near $87,137.
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The Relative Strength Index (RSI) RSI at 51 suggests a neutral to slightly bullish momentum, showing BTC is not in overbought territory. However, the narrowing Bollinger Bands could indicate a potential breakout or breakdown ahead.
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