The crypto market is going through its worst days since March 2020. With a 32% correction on the weekly chart, the price returns to levels last seen in January 2021. At the time of writing, the largest cryptocurrency by market cap is trading at $ 32,000, with a loss of 15% on the daily chart and 34% on the monthly chart. Similarly, Ethereum price fell below $ 2,000 for the second time since April 7 and fell to the lowest value of $ 1,737.47 during the day.
As an interesting development after these price movements, Paolo Ardoino, technology director of the leading crypto exchange Bitfinex, announced that a large number of Bitcoin and Ethereum have been invested in the exchange’s cold wallets in recent hours.
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
Explaining the development in question, Ardoino also said that the amount is over 12 thousand BTC and about 200 thousand ETH.
In general, coins deposited in stock exchanges are considered as sales signals. If the supply of Bitcoin or Ethereum in the exchanges decreases, it can be thought that investors are adopting the HODL strategy. Otherwise, it can be thought that investors have invested coins in stock exchanges to sell.
But Bitfinex CTO, BTC, ETH etc. in credit transactions. noting that assets were used as collateral and stated that the invested assets may not have been deposited for sale. In a different post, Ardoino reported that long positions in ETH have increased.