Bitcoin, Ethereum whales swim out of Huobi, with a huge catch

Following China’s crackdown on crypto transactions, exchanges began restricting their services to users based in China. FUD spread quickly, and many traders began to wonder what penalties they would face if they break the latest ban.

Around the same time, the normally quiet weekend brought a frenzy of Bitcoin and Ethereum whales moving their coins from addresses of the China-based Huobi crypto exchange.

A short vacation planned by whales

Whale Alert’s Twitter account sounded the alarm when Bitcoin whales moved around 22,000 BTC, or about $ 952,215,000 (at press time) from the Huobi exchange to other locations and unfamiliar purses. Broadcasts began around 03:43 UTC on September 26.

Source: Twitter @whale_alert

The Ethereum whales have not been idle either. On September 26 at around 6:49 UTC, Wale moved around 800,000 ETH in installments of 100,000 ETH, or $ 2,403,039,390 (as of press time) from Huobi to other locations and unfamiliar purses.

While there were a number of high-quality moves, most of them came from a few wallets that made repeated transfers.

Source: Etherscan

Swim to new ports

The whales aren’t exactly cuddly, however [or hiding] their coins. Glassnode data showed that The inflow volume of the Ether Exchange just hit a one-month high of 12,342,276 ETH, based on the 7-day moving average.

📈 #Ethereum $ ETH Exchange Inflow Volume (7d MA) just hit a 1-month high of 12,342,276 ETH

View metric: https://t.co/5BpFXu5Doq pic.twitter.com/SLEbfpjxFb

– glassnode notifications (@glassnodealerts) September 26, 2021

However, if you look at the daily on-chain exchange flow for September 26th, Glassnode data showed that $ 629.6 million left the exchanges in BTC, while $ 590.5 million left the exchanges in the Left ETH. Both coins posted a negative net flow of more than $ 100 million each.

📊 Daily on-chain exchange flow # Bitcoin $ BTC
➡️ $ 495.4 million in
⬅️ $ 629.6 million out
📉 Net flow: -134.2 million $ Ethereum $ ETH
➡️ $ 439.0 million in
⬅️ $ 590.5 million out
📉 Net flow: $ -151.5 million #Tether (ERC20) $ USDT
➡️ $ 371.4 million in
⬅️ $ 385.9 million out
📉 Net flow: -14.5 million $ https: //t.co/dk2HbGwhVw

– glassnode notifications (@glassnodealerts) September 26, 2021

News from stock exchanges

In August of this year, Huobi recorded an inbound transfer of $ 740 million in Bitcoin. However, the newer whales have moved much more in Bitcoin and Ether, through the exchange and outside of it.

With China’s recent ban in mind, investment strategist Raoul Pal suggested that the move may have been a way to clear the crypto scene before the country’s adoption of the digital yuan. China’s CBDC has entered the pilot phase in which four cities are participating. The government intends to introduce the digital yuan in time for the Beijing Winter Olympics in February 2022.

In an announcement, Huobi Global said it has “suspended account registration for new users in mainland China” and will “gradually withdraw existing user accounts in mainland China” by 2022. Binance has also blocked users with Chinese phone numbers from logging in. Binance, Huobi and OKEx had previously been blocked by Chinese search engines.

At the time of going to press, the Bitcoin Fear and Greed Index was trading at 27. Meanwhile, the Ethereum Fear and Greed Index was trading at 34. Both signaled fear.

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