According to on-chain analyst Eugene, Cosmos network developers transferred 295.3 bitcoins. This is the first large-scale transfer in about two years.
At the current price of $94,410.82, 295.3 Bitcoin (BTC) is worth approximately $27.8 million. Eugene explained that some of the BTC sold during the recent decline is likely to be funds raised during the Cosmos ICO in 2017, when Cosmos received large contributions from BTC and Ethereum (ETH).
This new transfer is not the only one this year, as Cosmos developers also transferred $10.16 million to ETH on November 22nd of this year. Now the developers have sold 295.3 BTC, for a total of $78.67 million. However, the developers still hold 96.4 BTC and 17,188 ETH, worth about $67 million at current market prices.
This shows that even after recent transfers, the team still has a lot of money from their ICO solicitation. These trades may be part of an active strategy to generate profits, as BTC and ETH have plummeted 11.43% and 14.79%, respectively, over the past seven days, according to CoinMarketCap.
Bitcoin in Disgrace While Cosmos is selling
Large BTC sales can increase market selling pressure, driving prices lower if demand cannot be maintained. Sales of this magnitude, especially in less liquid markets, can sometimes overwhelm buyers and drive down prices. This tends to be exacerbated by traders selling before further declines occur, adding additional selling pressure. This can be seen in more detail in moving average convergence divergence analysis, which examines moving averages and momentum to help discover price trends and reversals in an asset.
The BTC/USD chart shows a bearish crossover with the MACD indicator, which has also moved above its signal line. This is usually a sign that downward momentum may be ahead. Further complicating this interpretation, the histogram crosses below zero, indicating a surge in selling pressure. On the other hand, BTC may return to its previous highs. When the MACD line crosses the signal line, there may be a bullish reversal in the ongoing trend.
This crossover signals a surge in demand and a positive change in attitudes, which, along with momentum from other market players, could push prices higher. Currently, BTC appears to be in a “run or die” situation where anything can happen with signals and MACD lines merging with no potential price direction.
Disclosure: This article does not represent investment advice. The content and materials contained on this page are for educational purposes only.