Crypto Whales Channel $1.3 Billion to Coinbase: A Prelude to a Bullish Market?

2024-05-08, 02:15

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## [TL; DR]
On 25 April five whale wallets deposited USDC worth $1.3 billion on Coinbase crypto exchange.

The market has interpreted the deposit of USDC worth over $1.3 billion as a bullish signal.

Crypto whales can manipulate the market by buying or selling large amounts of coins or tokens in a short period of time.

## Introduction
There are several factors that [influence prices of cryptocurrencies](https://www.gate.io/blog_detail/1580/factors-that-determine-the-value-of-bitcoin "influence prices of cryptocurrencies") which include supply, demand and market sentiments. However, there is an extra factor that may determine the value of crypto assets. It is the activity of crypto whales who may coordinate their participation in the digital market.

For instance, [crypto whales](https://www.gate.io/learn/articles/what-are-cryptocurrency-whales/714 "crypto whales") may choose to buy or sell large amounts of a certain digital asset within a particular period to influence its value. Coordinated whale activity may influence the price of a crypto asset, either upwards or downwards. In this article, we discuss how some crypto whales moved large amounts of funds into the Coinbase exchange and how that may affect the prices of major cryptocurrencies like ETH and Bitcoin.

Read also: [What are crypto whales and why the matter](https://www.gate.io/de/blog_detail/2250 "What are crypto whales and why the matter")

## The Transfer Details: $1.3 billion USDC sent to Coinbase by crypto whales
In a move that may stimulate the crypto market, on 25 April crypto whales conducted $1.3 billion <a href="/uk/price/usd-coin-usdc" target="_blank" class="blog_inner_link">USD Coin</a> ([USDC](https://www.gate.io/de/learn/articles/what-is-usdc/113 "USDC")) transactions on Coinbase. The details of these transactions show a seemingly coordinated effort among crypto whales.

For example, all the transactions were conducted within a short period, which suggests that they might have been carried out by an individual or a single institution. Five wallet addresses conducted all the USDC stablecoin transactions. To start with, address 0x45a transferred 295.86 million worth of USDC to Coinbase, while 0x29d and 0x41d sent 350 million USDC each. Similarly, wallet addresses 0x29d and 0x41d transferred 150 million USDC each to Coinbase. 
![](https://gimg2.gateimg.com/image/article/17151342861.jpg)
Source: x.com

The above image shows some of the transactions. The fact that the transactions of the five wallet addresses were carried out in a similar pattern suggests that one institution or individual might have conducted them all. For instance, the wallet 0xeC9 received funds from another address, 0x747, before transferring 150 million USDC to Coinbase.

Similarly, wallet 0x747 which was replenished around mid-March also sent USDC to Coinbase. Such moves suggest that the involved crypto whales’ positions might have been liquidated at the peak of the market. As a result, they might have moved their crypto assets to self-custody. In all, a total of five addresses transferred a cumulative $1.3 billion in USDC to Coinbase.

## Deciphering the Bullish Signals from the Whale Activity
The USD coin (USDC) transfer amounting to $1.3 billion could be a strong bullish signal during a period when many cryptocurrencies are in accumulation phases. Notably, several analysts believe that such deposits could be a “giant buy signal, depending on where the whales finally deploy their coins. As the following image shows, Cointelegraph has also indicated that the USDC transfer to Coinbase is a bullish signal.
![](https://gimg2.gateimg.com/image/article/17151343292.jpg)
Source: x.com

Crypto investors often view large crypto deposits as bull signals as they expect the depositors to execute important transactions in the near future.  Lark Davis aka “The Crypto Lark,” a crypto commentator, concurs that such a large deposit may have a significant effect on prices of certain assets.

In an interview with Cointelegraph, [Davis said](https://cointelegraph.com/news/crypto-whales-transfer-exchange-coinbase-buy-signals "Davis said"), “If this is indeed a whale buying and at current prices, then yes, it can have a big impact on the price of the asset they are buying, which at that level is almost certainly only Bitcoin and <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>.”

As per Davis’ explanation, if the crypto whales use all their USDC [to buy bitcoin](https://www.gate.io/how-to-buy/bitcoin-btc "to buy bitcoin"), its price may increase by a large margin. Similarly, if they invest all the USDC in ETH its price may rise by a large margin as well. However, if they invest in different cryptocurrencies like ETH, BTC, SOL and <a href="/uk/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> their prices may rise by smaller margins. Interestingly, any investments using such an amount may create a positive crypto market sentiment, which may turn bullish in the future.

Read also: [How to Buy USD Coin (USDC) ](https://www.gate.io/how-to-buy/usd-coin-usdc "How to Buy USD Coin (USDC) ")

Davis [explained](https://cointelegraph.com/news/crypto-whales-transfer-exchange-coinbase-buy-signals "explained"): “A lot of attention gets paid to whale movements, but we never really know what they are doing… A limit order will go in, creating a buy wall that will act as a layer of price support for the assets.” Therefore, such a capital injection may prevent the price of the cryptocurrency to fall further.

Brian Jung, a crypto analyst and YouTuber, also highlighted that  a $1.3 billion capital injection in the crypto sector may have a large impact on the market. Cointelegraph quoted Jung [as saying](https://cointelegraph.com/news/crypto-whales-transfer-exchange-coinbase-buy-signals "as saying"), “$1.3B is a good amount of capital but it depends on where this is getting deployed…”

He added, “If this amount were deployed into a single altcoin with a $100M market cap, it would absolutely spike the price, but I can’t imagine any whale in their right mind doing this as it would make it nearly impossible for them to be profitable...”

## Crypto Whales' Calculated Move: A Strategy for Bullish Momentum?
Smart money movements can determine the prices of investment assets like cryptocurrencies. For example, a bullish cryptocurrency speculation may influence crypto whales to inject much capital in a specific digital asset like ETH or <a href="/uk/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>. If they want the price of bitcoin to rise, for instance, they will buy it in large amounts.

On the other hand, if they aim to force the [price of BTC down](https://www.gate.io/price/bitcoin-btc/usd "price of BTC down"), they would sell much of their holdings. By flooding the market with bitcoin its price would tumble. What is important to realize is that, in most cases, these whales coordinate their buying and selling behaviors.

In the current situation, the crypto whales may aim to push the price of a particular crypto asset like ETH up at a certain time. For example, they may aim to buy ETH towards launching spot ETH EFTs in the United States. That may drive the <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum price</a> up leading to an entire crypto market rally. Only time will tell exactly how the crypto whale Coinbase transfer will affect crypto prices.

As an example, if the whales decide to invest heavily in the two leading cryptocurrencies (BTC and ETH), the impact on the Bitcoin and Ethereum markets will show in the next few weeks. Bitcoin and ETH may take a leading role in the next bull run that the halving event might have initiated.

## What is the purpose of a whale in the context of the Blockchain?
As noted above, the activity of crypto whales may influence the direction the entire cryptocurrency market may take. When the whales buy or sell a substantial amount of a cryptocurrency its price may fluctuate significantly which could create a domino effect within the entire market. What is also noteworthy is that the whales, often, approach the market with a long-term perspective since they use sophisticated investment strategies. In some cases, they hold certain cryptocurrencies for long periods which may force their prices up. In such situations, they may only sell their holdings when they make huge profits. Let’s look at two common strategies crypto whales employ.

Mass-sell off: Large holders of certain cryptocurrencies may sell the token/coin in large amounts to push its price down by a huge margin. Once that happens the whales may buy more of the crypto asset than before.  Thus, they will have more coins/tokens.

Buying a crypto asset, en masse: A number of bitcoin whales may initiate high buying pressure by acquiring large amounts of an asset. Such buying behavior will force the price of the asset to rise beyond a certain level. Once its value reaches the target price the whales will sell their holdings, thereby making huge gains.

## Conclusion 
On 25 April crypto whales moved USD coins worth $1.3 billion to Coinbase in a way that the market interprets as a bullish signal. However, the effects of such transactions on the market will depend on how the whales use the USDC. [Large crypto holders may manipulate the market](https://www.gate.io/blog_detail/451/btc-whale-holders-is-it-possible-to-know-who-they-are "Large crypto holders may manipulate the market") through selling or buying large quantities of a coin within a short period. To achieve their aims most crypto whales coordinate their market activities.

## FAQs about Crypto Whales
### What are whales in crypto?
Crypto whales are individuals or organizations that hold large amounts of specific cryptocurrencies. In terms of bitcoin, a whale holds BTC worth $10,000 or more. In general terms, though, a person or organization that holds at least 10% of a given cryptocurrency is a whale.
### What is a whale transaction?
A whale transaction is a crypto transaction with a very high value which a crypto whale makes. This may be a deposit or withdrawal transaction.
### How do I track crypto whale transactions?
You can use the related blockchain explorers to check whale transactions. You can also join crypto communities that specialize in tracking whale activities using bots.

<div class="blog-details-info">
<div>Author:**Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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