New concerns related to institutional sales in the cryptocurrency market have appeared. However, a recent report shows an institutional player’s actions. On 12th September 2024, Ceffu made a transfer of 3,123 BTC, which is equivalent to $181 million, to Binance.
Ceffu’s Recent Activity Raises Red Flags
This is not the first time that such a Bitcoin deposit has been made in the exchange. There has been an increase in such deposits in the last few months.
From August 1, 2024, Ceffu has transferred 12,320 BTC, equal to $718.18 million. Similarly, Ceffu also sent Bitcoin transactions and deposited 85,347 ETH, approximately $210 million. The large-scale transfers from Ceffu in the recent past have created much talk that such movements could be preparing the ground for significant sales.
This is even more worrying given the pattern of withdrawals that has followed these deposits. Besides, Ceffu has transferred 7,700 Bitcoin and 156,000 Ethereum and withdrawn $515 million USDC and $514 million USDT from Binance.
Such large-scale movements of stablecoins may imply that Ceffu is selling its cryptocurrencies for more stable forms of digital assets, possibly to book profits or make a hedge against price fluctuations.
Such transactions have elicited fear, especially from traders and investors keen to track the activities of large institutions such as Ceffu. Selling signals are typically inferred from large transfers to centralized exchanges such as Binance, and Ceffu’s transactions have been on a larger scale, thus increasing such suspicions.
Bitcoin Price Update: A Period of Consolidation
Although there is a lot of institutional activity, Bitcoin has maintained its stability, with a price of $57,885 at the time of writing. Thus, the cryptocurrency has experienced a minor growth of 0.3% in the last 24 hours, but it is still 1.9% lower than at the beginning of this month. This slow recovery may signify a new phase for Bitcoin, consolidation within the $57,000 to $58,000 range.
Regarding the data, Bitcoin’s market capitalization is somewhere in the region of $1.15 trillion. Its daily trading has gone down to $29.79 billion, a 19.93% increase compared to the previous day.
When writing, the total number of Bitcoins in circulation is 19.75 million BTC. It is close to the maximum of 21 million, which could fuel future demand. However, institutional buying and selling from other market participants and market sentiment are expected to affect these short-term fluctuations.
The Bitcoin price chart suggests that BTC has been ranging without significant fluctuations over the past few days. In this situation, the price moves horizontally, showing no clear direction, usually followed by a surge in either direction.
Currently, the market is more stagnant as traders wait for the next big move, whether institutional activities, macroeconomic events, or any other stimulus.
Weak Trend Signals a Possible Breakout
Analyzing the charts, it is possible to state that Bitcoin is in a weak trend. The ADX indicator, which defines the strength of a trend, is currently at 12.59.
This low reading indicates that Bitcoin is not in the process of strengthening or weakening but is stuck in the middle. The ADX shows that Bitcoin has been ranging, and the bulls and the bears have been unable to force the price in a particular direction.
It is also visible from the price chart depicted above, where Bitcoin has been trading in a range indicated by the blue color. This price range indicates that a breakout is imminent.
As has been the case in history, consolidation phases usually occur before a major price action. However, it is still uncertain in which direction the next breakout will occur, whether to the upper or lower side. People need to be ready for possible fluctuations in the next few days.
The general market environment may also influence BTC’s next direction. Volume has been declining, coupled with the deposit and withdrawal activities observed mainly from Ceffu, which might be signs that institutional investors are cutting back their exposure to Bitcoin or preparing for a significant change in strategy. This could lead to heightened selling pressure, which may force Bitcoin prices to plummet if a large volume of Bitcoin is sold in the open market.
