Cosmos Network Developers Sold Over $27 Million in Bitcoin

According to on-chain analyst Yujin, Cosmos Network developers transferred 295.3 Bitcoins. This is the first major transfer in almost two years.

At the current price of $94,410.82, 295.3 Bitcoin (BTC) is worth approximately $27.8 million. Yujin explained that some of the BTC sold in the recent decline stemmed from funds raised during Cosmos’ Initial Coin Offering in 2017, when the project received high-value contributions in BTC and Ethereum (ETH).

This new transfer is not the only transfer that Cosmos developers have made this year, as their team transferred $10.16 million in ETH on November 22 this year. Developers have now sold 295.3 BTC for a total of $78.67 million. However, developers still have 96.4 BTC and 17,188 ETH, worth approximately $67 million at current market prices.

This shows that even after the recent transfers the team is still holding onto a large amount of money from the ICO raise. These trades may be part of an active strategy to make profits, as both BTC and ETH are down 11.43% and 14.79%, respectively, over the past seven days, according to CoinMarketCap.

Bitcoin in limbo amid Cosmos sell-off

Large-scale BTC sales are expected to increase selling pressure in the market; This can cause prices to fall when demand does not sustain. Sales of this scale, especially in markets with low liquidity, can sometimes overwhelm buyers and cause prices to drop further. This situation is exacerbated as traders sell before further declines occur, creating additional selling pressure. This can be further seen in Moving Average Convergence Divergence analysis, which helps discover price trends and reversals of an asset by examining moving averages and momentum.

Bitcoin’s MACD chart for December 24, 2024 shows recent bearish divergence with negative histogram values, indicating potential bearish momentum. Source: TradingView, crypto.news

The BTC/USD chart also shows a bearish trend with the MACD indicator breaking above the signal line; this is often a sign that downside momentum may be ahead. Additionally, the histogram falling below zero strengthens this interpretation and indicates an increase in selling pressure. On the other hand, BTC may rebound to previous highs. If the MACD line crosses the signal line, a reversal of the trend may occur.

A crossover like this would signal a rise in demand and a positive change in attitude, which, along with momentum from other market participants, could push the price even higher. Currently, BTC appears to be in a “do or die” situation where anything can happen without any potential price direction with both the signal and the MACD line converging.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.