According to on-chain analyst Yujin, Cosmos Network developers transferred 295.3 Bitcoins. It is the first major transfer in almost two years.
At the current price of $94,410.82, 295.3 Bitcoins (BTC) are equivalent to approximately $27.8 million. Yujin explained that some of the BTC sold in the recent decline likely came from funds raised around the time of Cosmos’ first coin offering in 2017, when the project received high-quality contributions in BTC and Ethereum (ETH).
This new transfer is not the only one that Cosmos developers have made this year, as their team transferred $10.16 million in ETH on November 22nd this year. Now the developers have sold a total of $78.67 million along with the 295.3 BTCs. However, the developers still have 96.4 BTC and 17,188 ETH, which is worth about $67 million at their current market price.
This shows that the team is still holding a large amount from its ICO deposit even after the recent transfers. These transactions could be part of an active strategy to make profits, as both BTC and ETH have plunged by 11.43% and 14.79%, respectively, in the last seven days, according to CoinMarketCap.
Bitcoin in limbo amid the Cosmos sell-off
Large BTC sales should increase selling pressure in the market, which could lead to lower prices if demand cannot keep up. Sales of this magnitude, especially in markets with little liquidity, can sometimes overwhelm buyers and drive the price down. This tends to be made worse by traders selling before further declines occur, creating additional selling pressure. This can be further seen in the moving average convergence-divergence analysis which helps…
