Matrixport’s $452M Ethereum deposit to Binance and OKX, followed by a swap for 2,354.6 BTC ($272M), signals a strategic pivot to Bitcoin.
Matrixport, a cryptocurrency firm, appears to be selling Ethereum after recent transfers to Binance and OKX. It transferred 2,354.6 BTC ($272 million) from both exchanges. This has resulted in rumors that Matrixport is selling Ethereum to acquire Bitcoin.
Matrixport transfers $452 million in Ethereum to OKX and Binance
Lookonchain, an on-chain analytics platform, alerted the community to these transfers in an X post today. Binance and OKX received 95,873 ETH ($452 million) from wallets associated with the crypto firm.
Additionally, wallets linked to Matrixport withdrew more than 2,300 BTC (approximately $272 million) from Binance and OKX. Analysts interpret this as the exchange of ETH and BTC. The migration is consistent with the exodus to BTC during periods of market uncertainty.
The transfers initiated the debate regarding the impact of whale activity on the price. While some maintain that this portfolio balancing is beneficial, others are apprehensive that it will harm the price of ETH in the short term. No statement has been issued by the organization thus far.
It is important to note that these transfers occurred in the context of the Ethereum price reaching a new all-time high (ATH) on August 22. The ETH rally was triggered by Jerome Powell’s indication of a dovish Fed shift, which indicates that a rate cut is highly probable in September.
The Price Performance of ETH in the Context of These Changes
Ethereum has maintained its position despite the monster activity. At the time of publication, the price of ETH is $4,720, a minor decrease from the previous day. The price continues to trade above the low of $4,500 from last week, indicating relative strength.
The current value of 4,650 is the zone of support, as emphasized by the technical experts. Bulls can regain the situation if Ethereum continues to sustain the abovementioned position. A breach below could indicate a decline in sentiment.
Furthermore, market confidence is derived from the expansion of optimistic narratives. They consist of the advancement of network upgrades and optimism regarding exchange-traded funds (ETFs). Nevertheless, large-scale transfers such as Matrixport’s may introduce volatility risk in the short term.
The trajectory of ETH is the subject of CoinGape’s most recent analysis, which emphasizes optimism. It indicated the formation of a “bull flag” chart pattern on the daily chart of ETH. Despite BlackRock’s $272 million sale of ETH, the analysis perceives the pattern as a precursor to a breach above $5,500.
An additional analysis issued a cautionary note regarding the potential for decline. It was observed that Ethereum’s value could decrease to $4,000 due to the profits generated by whale bookings. This viewpoint is predicated on the escalating selling pressure and the decrease in Spot Taker CVD.
