Crypto traders panic sell $4.7 billion USDC for fiat on Coinbase, here’s what this means
|- Coinbase has burned $4.7 billion USDC converting the stablecoin to fiat in response to the actions of US regulators.
- $330 USDC million were burned within a 24-hour period.
- Bitcoin whales are sending BTC back to exchanges while retail investors pull their holdings out of crypto platforms.
Coinbase, one of the largest cryptocurrency exchanges, witnessed a massive increase in the volume of USDC burned on its platform.
A wallet address burned - meaning converted $4.7 billion USDC to fiat - amidst rising uncertainty in crypto, after the SEC leveled charges against Kraken.
Coinbase witnesses panic selling, crypto traders burn $4.7 billion USDC for fiat
PeckShield, a blockchain intelligence firm, alerted crypto market participants of the $4.7 billion USDC burn which happened on Coinbase, within the last 24 hours.
Coinbase burns $4.7 billion USDC in a 24-hour period
Colin Wu, a Chinese reporter noted the move by crypto traders on Coinbase and interpreted this as “panic selling” caused by the actions of US regulators. US financial regulator, the Securities and Exchange Commission, charged cryptocurrency exchange platform Kraken for its crypto staking-as-a-service product.
The exchange settled for $30 million, while fear, uncertainty and doubt about the future of crypto staking and liquid staking platforms prevails. Crypto market participants exchanged their stablecoins for fiat, in a risk averse move, in the face of increasing regulatory crackdown in the US.
Why Bitcoin whales are sending BTC to exchanges, is this a sell signal?
Bitcoin’s large wallet investors who hold over 1,000 BTC are beginning to move the asset back onto centralized exchanges. The trend has picked up pace among whales, while small investors remove their BTC from exchanges.
BTC whale position change
When BTC leaves exchanges, it is considered bullish, while the opposite is bearish. On-chain activity interprets that both large and small investors have vastly opposite interpretations of where BTC price is headed. The former is pessimistic and the latter optimistic about a BTC price rally.
It is likely that whales are managing their downside risk, shedding their holdings before BTC price declines further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.