Recent data shows massive transfers of cryptocurrencies by whales to centralized exchanges. The volume of these operations could affect market conditions.
Transfers and Their Volumes
According to information from Santiment, in the last 24 hours, whales have transferred $10.9 million in PAX Gold, $3.5 million in Gala, and $2 million in PEPE to centralized exchanges. These transfers account for nearly 1.25% of the total market cap of some of the mentioned coins.
Why Does This Matter?
The transfers were made to major centralized exchanges like Binance, OKX, and Bybit. This usually happens as a profit-taking strategy among large investors. By offloading large amounts, they increase supply on the exchange, which can lead to price declines.
Market Consequences
Price declines can trigger panic selling among retail investors, who also begin to liquidate their holdings. This leads to increased supply on the exchanges and reduced demand across the market. Typically, such whale activity causes significant price volatility.
Whale activity remains an important indicator for traders. It is crucial to monitor their actions closely as they can significantly influence market sentiment and prices.
