Bitcoin [BTC], the world’s largest cryptocurrency, has had a remarkable run-up since the start of the year, growing by more than 100 percent since January. This increase in price and market cap has also been one of the reasons why the ecosystem has become more active, thanks to more developments and involvement from users of the ecosystem.
In a recent tweet, it was also revealed that BTC’s surge had resulted in a lot of cryptocurrencies being moved to multiple wallets and exchanges. This pattern was not an isolated incident however, as reports of massive movements have become a norm since the bear market ended.
There was a series of large Bitcoin transfers in block 580237 for a total transfer of 496,261.034 BTC. This accounted for 2.8 percent of the total circulating supply. What surprised users however, was the fact that out of all the transactions, seven transactions accounting for 407,357 BTC were sent to a known Binance wallet.
Although transfers are common in the cryptocurrency space, this specific set of transactions was called out by @Rptr45 who asked,
“Does @cz_binance care to comment on this? That’s a lot of $BTC to be moving around it looks like some of it was recirculated between a couple of connected addresses.”
This transfer was also noted by Alex Kruger, a popular cryptocurrency trader and economist, who pointed out the “massive amount of Bitcoin on the move.” The community sentiment about the transfer however was split, with some thinking that the transfer was just normal and didn’t really lead anywhere.
Lex van der Werff, a cryptocurrency enthusiast, commented,
“Spoiler: it’s how bitcoin works. Can’t spend your $50 bill on something worth $10 if you don’t get $40 back.Why they used multiple large UTXO’s to supply their hot wallet with fresh BTC instead of just one, I don’t know.”
Binance’s impact on the cryptocurrency space has been quite significant, with the exchange’s Binance Coin surging by over 5 percent, along with other altcoins like Litecoin and Cardano.