- 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.
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