The early May crash was one of the biggest plunges ever recorded in the crypto market. Although, the Fed rate hikes was the primary factor, there were other reasons behind the dip. Interestingly, we can see a week following the crash that crypto insiders were anticipating such event. A leading crypto analytics firm has revealed that crypto insiders moved billions of Bitcoin to Binance right before the storm. However, the question remains, are they done selling, or will there be more downward pressure?
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Crypto Insiders
Just when Michael Saylor was telling the good folk to buy Bitcoin before it shoots up into the atmosphere, crypto insiders were bracing up for a bear market. According to CryptoQuant, about $2.5 billion in Bitcoin moved to Binance before the crash.
The Chief Executive of Quant stated on Twitter that crypto insiders moved approximately 84,000 in BTC to Binance. To be specific, crypto insiders are referred to as market makers. Apparently, this 84,000 BTC moved only from Gemini to Binance.
“The market makers, who use Gemini sent ~84,000 BTC to Binance from May 7th to May 10th, hitting an all-time high.”
Based on Analysis, insiders proceeded to relocate 65,000 BTC, which was worth $1.95 billion at the time to different exchanges. However, Coinbase managed to receive most of the transfer.
“The majority of selling pressure came from Coinbase since they had the largest BTC inflows from Binance. BTC/USD spot trading volume on Coinbase hit a year-high. Coinbase Premium hit the three-year low of -3%.”
According to Ki Young Ju, most of the selling pressure went straight to US-based institutional investors.
“Market maker(s), including the ones hired by LFG [Luna Foundation Guard], already sent 84,000 BTC ($2.5 billion) to multiple exchanges last week. Not sure they finished selling, but it is highly likely for the accumulation from institutions since Coinbase digested the majority of selling pressure.”
Furthermore, CryptoQuant believes that institutional players are currently putting in buy orders. Ki Young Ju believes the investors to try to accumulate Bitcoin between $25,000 to $30,000.
“If you see the BTC/USD order book heatmap for Coinbase, it’s pretty thick bid walls since the latest bear market in May 2021. I think institutions tried to stack BTC from $30,000 but had to rebuild the bid walls at $25,000 due to the unexpected LFG selling.”
