BlockFi, the bankrupt crypto lending platform, has reportedly moved a substantial amount of Chainlink (LINK) tokens valued at $46.5 million to the Kraken exchange. This transaction, brought to light by on-chain analyst EmberCN, has sparked discussions regarding its potential impact on the market.
The transfer involved 2,402,945 LINK tokens, highlighting its significance within a total of $48.37 million worth of various cryptocurrencies that were sent to Kraken. This action takes place against the backdrop of BlockFi’s ongoing bankruptcy journey.
“The bankrupt crypto lending platform BlockFi transferred 17 tokens worth $48.37 million to Kraken… The top four token values transferred from BlockFi to Kraken: 2,402,945 LINK ($46.5 million); 90,993 UNI ($0.68 million); 16,570 AVAX ($0.63 million); [and] 468,506 MATIC ($0.47 million),” EmberCN revealed.
In September 2023, BlockFi received approval to initiate customer repayments as part of its liquidation plan. Following this, in October, the company announced its emergence from bankruptcy, resuming withdrawal services for Wallet customers and repaying Interest Account holders and Retail Loan clients. This marked a significant milestone in restoring normal operations.
As BlockFi continues to liquidate assets, including the LINK tokens, market observers are closely monitoring the potential impact on prices. Meanwhile, some market whales are taking a different approach by accumulating LINK, adding an additional layer of complexity to the situation.
Spot On Chain reported that a crypto whale demonstrated a bullish stance on LINK by withdrawing 194,400 LINK, equivalent to approximately $3.67 million, from Binance. This withdrawal signifies a significant move in the whale’s trading cycle, which commenced with the acquisition of 928,016 LINK at an average price of $17.35, totaling around $16.1 million since January 28, 2024.
From a technical standpoint, LINK finds itself at a critical juncture, testing the lower trendline of a descending channel. This scenario suggests the possibility of a rebound towards the upper channel boundary around $19.70. Market sentiment and future price direction may hinge on a breakout or breakdown from this pattern.
Market analysts, including the pseudonymous LinkSpartan, offer insights into institutional strategies and market dynamics. They advise adopting a cautious stance, hinting at a potential market correction influenced by broader economic factors and liquidity conditions.
“We’ve been in ‘up only’ mode since June 2023. This may not be a popular stance, but I believe the community is becoming increasingly exuberant. To sustain upward momentum, the market requires fuel. How does it obtain that fuel? By taking liquidity at key levels below current prices,” stated LinkSpartan.