Cosmos Network Developers Sell 295.3 Bitcoins Amid Market Downturn

Transfer Marks First Large-Scale Sale in Almost Two Years

According to on-chain analyst Yujin, the Cosmos Network developers recently transferred 295.3 Bitcoins, marking the first large-scale transfer in almost two years. At the current market price, the transferred Bitcoins are valued at approximately $27.8 million.

Yujin explained that some of the Bitcoins sold during the recent market dip likely originated from the funds raised during Cosmos’ Initial Coin Offering (ICO) in 2017, when the project received high-value contributions in Bitcoin and Ethereum.

Additional Sales and Holdings

This transfer is not the only one made by Cosmos developers this year. On November 22, the team transferred $10.16 million in Ethereum. Combining this with the 295.3 Bitcoins, the developers have sold a total of $78.67 million. However, they still hold 96.4 Bitcoins and 17,188 Ethereum, worth around $67 million at current market prices.

Potential Market Impact

Large-scale Bitcoin sales can increase market selling pressure, potentially driving prices lower if demand does not keep up. This can be exacerbated by traders selling before further price drops, creating additional selling pressure.

A technical analysis using the Moving Average Convergence Divergence (MACD) indicator suggests potential downward momentum for Bitcoin. The MACD chart shows a recent bearish crossover with negative histogram values.

Technical Analysis and Potential Reversal

The BTC/USD chart displays a bearish crossover with the MACD indicator, indicating potential downward momentum. However, a bullish reversal is possible if the MACD line crosses over the signal line, signaling an increase in demand and a positive change in market sentiment.

At present, Bitcoin appears to be in a critical situation, with both signal and MACD lines merging, leaving the potential price direction uncertain.

Key Takeaways:

  • Cosmos Network developers transferred 295.3 Bitcoins, valued at approximately $27.8 million.
  • The team has sold a total of $78.67 million in Bitcoin and Ethereum this year.
  • They still hold 96.4 Bitcoins and 17,188 Ethereum, worth around $67 million.
  • Large-scale sales can increase market selling pressure and potentially drive prices lower.
  • A bullish reversal is possible if the MACD line crosses over the signal line.

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