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BitMEX Wallets Mysteriously Move 15,800 Bitcoin Today: What’s Going On?
In a surprising move in a volatile cryptocurrency market, Arkham data reveals that BitMEX, a major cryptocurrency exchange, has moved over $800 million in Bitcoin (BTC) in two significant transactions. These transactions occurred during a general downturn in the cryptocurrency market. However, Bitcoin bounced back above $55,000 after previously falling to a low of $53,000.
BitMEX Wallet Moves Massive Bitcoin Reserve
Second Arkham IntelligenceThe transactions involved 11,303 BTC worth $624 million and 4,503 BTC worth $249 million, all between BitMEX addresses. Furthermore, this led to a total daily outflow of over 22,000 BTC from the exchange. The recent BitMEX transactions have triggered a significant reduction in the overall supply of the Bitcoin exchange.
Thus, BTC trading supply has dropped by 21,000 BTC in a single day. This reduction is in stark contrast to the seven-day net inflow of 7,000 BTC into exchanges prior to these transactions, which now shows an outflow of 8,900 BTC. The market has interpreted these massive outflows as a sign of large-scale institutional or whale buying. However, it could also be related to BitMEX’s regulation of insurance funds.
BiteMEX had previously announced a wallet upgrade in June 2023. It stated that all customer deposit addresses would be replaced to improve the utilization of Bitcoin’s block space. This upgrade moved away from an on-chain multi-signature wallet containing the BitMEX founders’ private keys.
The recent transfers appear to be a continuation of this process, moving the remaining Bitcoin from legacy addresses (3BMEX…) to new wallets. BitMEX has made it clear that these large transfers could lead to third-party reports of significant on-chain asset movements.
BitMEX’s recent actions suggest a strategic financial move rather than cause for alarm. The exchange’s deposit wallet address, bc1q…pens, has received 22,686.27 BTC to date, with today’s transactions totaling 15,806 BTC. The wallet currently holds 22,685 BTC, worth approximately $1.27 billion, with minimal transfers to hot wallets.
Read also: Breaking News: German Government Moves 500 Bitcoins, Another BTC Dump Imminent?
BTC Sells and Macroeconomic Events
These moves come at a time of intense market activity and concern. German government recently sold over 9,000 BTC from its reserves and the collapse of the Mt. Gox exchange began repaying creditors as part of a $9 billion BTC and Bitcoin Cash (BCH) repayment plan. These developments have led to fear, uncertainty, and doubt (FUD) in the market. Additionally, they have caused panic selling and over $600 million in long liquidations.
In the meantime, the non-farm payrolls and unemployment data from the U.S. Bureau of Labor Statistics has positively impacted the market. With job growth slowing and the unemployment rate rising to 4.1%, the market sees the potential for further interest rate cuts by the Federal Reserve this year.
This data led to a temporary rebound in the price of Bitcoin. The United States added 206,000 jobs in June, below market estimates of 190,000 and down from 272,000 in May. Meanwhile, average hourly earnings for private nonfarm payrolls rose 0.3% in June, slightly below the 0.4% estimate.
The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures (PCE) price index, also showed signs of cooling. In addition, the headline PCE inflation rate slowed to 2.6% from 2.7%. While annual core PCE inflation fell to 2.6% from 2.8%.
These numbers have increased the likelihood of a 25 basis point rate cut in September, as indicated by the CME FedWatch Tool. In the event of a Fed rate cut, the cryptocurrency industry and Bitcoin could benefit, as investor sentiment could shift toward volatile assets. Additionally, New York Federal Reserve Bank President John Williams noted that the cooling of inflation is positive. However, he also noted that uncertainty remains as the inflation rate is still above target.
Read also: Breaking News: Mt. Gox Begins Repaying Creditors, Bitcoin Set to Drop Further?