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Ceffu, institutional custody partner for Binance, has deposited a massive Bitcoin (BTC) and Ethereum (ETH) reserves to the exchange. Today, the firm dumped over $93 million worth of BTC and ETH amid market uncertainty. This move sparked concerns around further bearish sentiment for Bitcoin and Ether.
Overview of Transactions Undertaken By Binance’s Partner
According to Lookonchain, an on-chain tracker, Ceffu deposited 28,865 ETH, valued at $66.74 million, and 450 BTC, worth $26.5 million, into the Binance exchange. Earlier, four days ago, the firm transferred 3,123 BTC, valued at $181 million, to the leading exchange, hinting at alarge-scale selloff.
These transactions add to a series of significant deposits by Ceffu since August 1, 2024. During this period, the custodian has transferred 12,770 BTC, valued at $745.3 million, and 114,212 ETH, valued at $276.74 million, into Binance. In return, Ceffu has withdrawn $515 million in USDC and $514 million in USDT from the exchange.
Ceffu deposited 28,865 $ETH($66.74M) and 450 $BTC($26.5M) to #Binance in the past 24 hours.#Ceffu currently holds 10,737 $BTC($628M) and 178,687 $ETH($411M).https://t.co/omUqldVuGf pic.twitter.com/x5CHrIzikq
— Lookonchain (@lookonchain) September 17, 2024
Ceffu’s deposit activity has sparked fears of a significant selloff, particularly given the size of its recent transactions. However, despite the recent dump, Ceffu holds 10,737 BTC, valued at $628 million, and 178,687 ETH, worth $411 million.
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The custodial service, which was formerly known as Binance Custody, changed its name to Ceffu last year, drawing inspiration from Binance’s Secure Asset Fund for Users (SAFU). It serves as the primary institutional custody partner for the exchange and handles large-scale transactions on behalf of institutional clients.
Other Factors Exacerbating Market Decline
The ongoing transactions from Ceffu come amid broader market turbulence. Bitcoin and Ethereum, along with other altcoins, have experienced significant price declines recently. Bitcoin long liquidations reached $23.96 million in the past 24 hours, significantly outpacing short liquidations, according to Coinglass.
In addition, Ethereum long liquidations were recorded at $18.80 million, more than double those of the previous day. These liquidations are believed to be driven by selloffs, including Ceffu’s movements and other large transactions in the market.
Notably, the cryptocurrency ecosystem has witnessed a surge in hacker-related activities recently, further exacerbating market uncertainty. WazirX, a popular crypto exchange, experienced a hack in which the attacker moved 5,000 ETH, valued at around $11.4 million recently.
Of this amount, $9.9 million was laundered through Tornado Cash, a decentralized privacy tool. Similarly, the DeltaPrime hacker completed laundering $5.98 million worth of Ethereum using the same platform. Additionally, the Ethereum Foundation recently sold 100 ETH in exchange for 226,868 DAI, contributing to market pressures.
Also, the Federal Open Market Committee (FOMC) meeting is scheduled for Wednesday, September 18, 2024. Historically, ahead of the FOMC meeting the crypto market experiences volatility, However, after the meeting, the situation could stabilize as the market braces for the first Fed rate cut since 2020.