Bitcoin and Ethereum are pouring into the cold wallets of the crypto money exchange Bitfinex. Paolo Ardoino from Bitfinex brought the issue to the agenda.
Huge number of Bitcoin and Ethereum
Explaining the figures on the subject, Ardoino states that the number of Bitcoins deposited in the cold wallets of the exchange exceeded 12,000 and the number of Ethereum reached 200,000. The total amount of coins withdrawn to cold wallets is worth about 800 million dollars. Ardoino states that this amount has not been invested specifically for sale. According to Ardoino, the deposited amounts are the amounts to be kept on a long term basis.
We've been seeing ton of BTC/ETH inflows in our cold wallets in the last hours in Finex (12k+ BTC, ~200k ETH)
Note that margin trading allows BTC, ETH, etc to be used as collateral, so while we don't know what's going to happen don't assume it will be 100% for selling.
— Paolo Ardoino (@paoloardoino) May 23, 2021
What does it mean to withdraw bitcoins to cold wallets?
The withdrawal of Bitcoins to cold wallets has a special meaning in the cryptocurrency field. Cryptocurrencies withdrawn to cold wallets are kept long-term, especially when the market is expected to rise. It is withdrawn from cold wallets during times of rising prices. The recent withdrawal of such a large number of cryptocurrencies to cold wallets, especially when price collapses have been experienced, also shows that large Bitcoin and Ethereum owners, called Whale, are buying BTC and ETH at low numbers. Whales often appear at times of price decline, buying lots of cryptocurrencies at the bottom prices, selling them during peak prices. The crypto money market also interprets the periods of Bitcoin and Ethereum declines as the periods when the whales accumulate.