Crypto whales with enormous asset bags appear to have sprang into action in the midst of a significant Bitcoin price surge. The bankruptcy of Silicon Valley Bank and Signature Bank caused a collapse in US banking equities on Monday, but a boost to the cryptocurrency market was welcomed by traders. Even as the US President attempted to boost trust in the US financial system in his most recent speech, the bank stocks fell. This is true even when US regulators intervened and took a number of urgent actions.
It's interesting to note that many venture capital firms who worked closely with the cryptocurrency ecosystem wanted to work with both Signature Bank and Silicon Valley Bank as their banking partners. In fact, the Silicon Valley Bank failure had a significant negative impact on USDC issuer Circle since the stablecoin's link to the value of one US Dollar was lost.
Bitcoin Whales Move Massive Amounts of Assets
Bitcoin whales are likely trying to take advantage of the current situation as the price of BTC is currently trading slightly above the $24,000 threshold. Around 6,000 BTC were moved in two transactions from unidentified wallets to the cryptocurrency exchange Binance, according to Whale Alert. While there was one 999 BTC movement, it was swiftly followed by a massive 4,999 BTC move from a separate wallet address.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 11,125 #BTC (267,956,866 USD) transferred from unknown wallet to #Binancehttps://t.co/Zbbp9EMHyx
— Whale Alert (@whale_alert) March 13, 2023
Another such transaction involved the transfer of up to 11,125 Bitcoin to Binance. The Bitcoin price appears to be beginning to fix itself right away, though it is unclear whether this is connected to the whale transfers.
Shares of institutions like Metropolitan Bank, Regions Financial Corporation, East West Bancorp, and Western Alliance Bancorporation had their trading paused in the past due to the high level of market volatility.
