According to on-chain analyst Yujin, the Cosmos Network developers transferred 295.3 Bitcoins. It is the first large-scale transfer to be seen in almost two years.
At the current price of $94,410.82, 295.3 Bitcoins (BTC) stand at roughly $27.8 million. Yujin explained that some of the BTC sold in the recent dip are likely from the funds raised around the time of Cosmos’ Initial Coin Offering in 2017 when the project received high-value contributions in BTC and Ethereum (ETH).
This new transfer is not the only one that Cosmos developers have made this year, as its team transferred $10.16 million in ETH on Nov. 22 this year. Now, along with the 295.3 BTCs, the developers have sold a total of $78.67 million. However, the developers still hold 96.4 BTC and 17,188 ETH, worth about $67 million at their current market prices.
This shows that even after the recent transfers, the team still holds a large amount from its ICO raise. These transactions could be part of an active strategy to make profits as both BTC and ETH have tanked in the last seven days by 11.43% and 14.79%, respectively, as per CoinMarketCap.
Bitcoin in a limbo amid Cosmos sell off
Large-scale BTC sales should increase market selling pressure, which might send prices lower when demand does not keep up. Sales of this scale, especially in low liquidity markets, can sometimes overwhelm buyers and send the price lower. This tends to be worsened by traders selling before further drops occur, as well as creating additional selling pressure. This can be further seen in the Moving Average Convergence Divergence analysis which helps discover an asset’s price trends and reversals by examining moving averages and momentum.
The BTC/USD chart shows the bearish crossover with the MACD indicator, which has also moved above its signal line – generally a sign that downward momentum may lie ahead. Also, the histogram crosses below zero to compound this interpretation, marking an upsurge in selling pressure. On the other hand, BTC could go back toward previous highs. There could be a bullish reversal of the going trend if the MACD line crossovers the signal line.
A crossover like that would point to an insurgence of demand and a positive change in attitude, which could push the price higher along with momentum from other market participants. At the moment, it looks like BTC is in a “do or die” situation where anything can happen with both signal and MACD line merging, with no potential price direction.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
