BNB Holders Brace for Impact as Whale Moves 200,000 BNB to Binance
The price of BNB could come under pressure after eagle-eyed market participants spotted a substantial amount of the cryptocurrency transferred to the Binance exchange. The move occurred in the hours leading up to press time with a whale transferring almost 200,000 BNB (approximately $102.6 million) to the popular trading venue.
The large transaction has caught the eye of market participants, who may quickly assume that the whale plans to liquidate the BNB stash on Binance. For good reason, such a liquidation, if done instantly, could momentarily negatively impact the market.
According to CoinMarketCap, BNB has a global trading volume of $2.1 billion in the past 24 hours. A $105 million sale would constitute around 5% of the global volume, creating a sell wall that might drive prices lower, especially in the light of recent bearish market conditions.
Meanwhile, the origin address for the BNB transfer, which was subsequently moved to Binance, still holds 204,609 BNB (worth approximately $105.6 million). Without strong demand, further liquidating this amount could also lower BNB prices.
Will the Price of BNB Drop?
In a respite, it is worth noting that the price of BNB has not moved substantially to suggest that a liquidation has occurred. After all, an astute buy/sell strategy may liquidate the holdings in a way that doesn’t move the market in either direction significantly.
Other possibilities also exist. For instance, the whale may have moved the BNB to Binance to access staking and earn products for the cryptocurrency. Additionally, offerings such as the Binance launchpool reward users with new tokens for locking BNB. Hence, the whale may have moved BNB to Binance to access these products in the near future.
BNB is trading at $517 at press time, representing a mild 2% increase in the past 24 hours. BNB holders will hope that news of a potential whale dump does not hamper the coin’s chances of recovering alongside other major cryptocurrency’s as the market seeks a redemption at the start of a new week.
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