Key Points
- The Cosmos Network developers have conducted a large-scale transfer of 295.3 Bitcoins for the first time in two years.
- The team still holds a significant amount of BTC and ETH from its Initial Coin Offering in 2017, despite recent transfers.
The developers of the Cosmos Network have moved 295.3 Bitcoins, marking the first significant transfer of this scale in nearly two years, according to on-chain analyst Yujin.
The current value of 295.3 Bitcoins (BTC) is approximately $27.8 million, given the current price of $94,410.82. Yujin suggests that the recent sale of some of the BTC during the market dip may have originated from the funds raised during Cosmos’ Initial Coin Offering in 2017, when the project received large contributions in both BTC and Ethereum (ETH).
Additional Transfers and Holdings
This is not the only significant transfer the Cosmos developers have made this year. On November 22, the team moved $10.16 million in ETH. With the recent transfer of 295.3 BTC, the developers have sold a total of $78.67 million. However, they still hold 96.4 BTC and 17,188 ETH, valued at approximately $67 million at current market prices.
Despite the recent transfers, the team still retains a substantial portion of the funds raised from its ICO. These transactions could be part of a strategic plan to profit as both BTC and ETH have experienced significant drops in the past week, with declines of 11.43% and 14.79%, respectively.
Impact on Bitcoin Market
Large-scale BTC sales can increase market selling pressure, potentially leading to lower prices if demand does not match supply. Sales of this magnitude, particularly in markets with low liquidity, can sometimes overwhelm buyers and push prices down. This effect can be exacerbated by traders selling off their assets in anticipation of further price drops, thereby creating additional selling pressure.
The Moving Average Convergence Divergence (MACD) analysis, which examines moving averages and momentum to identify asset price trends and reversals, further illustrates this. The BTC/USD chart shows a bearish crossover with the MACD indicator, often an indication of potential downward momentum. Conversely, a bullish reversal could occur if the MACD line crosses over the signal line, indicating an increase in demand and a potential shift in market sentiment.
Currently, BTC appears to be in a precarious position, with the signal and MACD lines converging and no clear price direction evident.
Please note: This article is intended for educational purposes only and should not be construed as investment advice.