BlockFi Transfers $50 Million in Crypto, Including 2.4 Million Chainlink (LINK)

• BlockFi transferred nearly $50 million in digital assets, including 2.4 million Chainlink (LINK) tokens, to Kraken.
• The move involves significant amounts of other tokens like UNI, AVAX, and MATIC, indicating a broad liquidation strategy.
• Following bankruptcy, BlockFi received court approval to start client repayments.

BlockFi reportedly transferred nearly $50 million worth of digital assets, including a sizable Chainlink (LINK) position, to leading exchange Kraken. The 2.4 million LINK tokens shifted, worth over $48.37 million, have sparked discussion around the potential price impact ahead.

On-chain monitor EmberCN revealed that alongside tokens like UNI, AVAX, and MATIC, Bankrupt BlockFi moved its mammoth LINK holdings to Kraken in recent days – likely a step in the liquidation process as its bankruptcy case continues unfolding.

BlockFi gained court approval last September to initiate client repayments under its restructuring plan. It announced re-opening withdrawal services for some customers in October, signaling early progress in restoring normal operations post-bankruptcy.

Massive Chainlink offloading could affect Chainlink

With the firm liquidating crypto inventory to fund user repayments, observers now debate how unloading such vast LINK sums could affect its often-volatile price. The situation grows more complex with some crypto whales, like Spot On Chain’s identified 0x7d2 address, withdrawing LINK simultaneously rather than selling.

The whale recently pulled another $3.67 million worth of tokens off Binance – part of an ongoing accumulation cycle since late January 2024. After gathering about $16 million in LINK sub-$17 initially, it sold batches around $19.50 this month to book profits. Its renewed interest despite price weakness indicates long-term conviction.

On the charts, LINK trades at a critical technical junction, testing support along the lower boundary of its bearish descending channel in play since September 2022. A breakdown below this trendline risks accelerating losses. But a reactive bounce could spark a rally back towards the upper $19.70 resistance.

With conflicting forces tussling over its trend right now, LINK’s next direction seems highly uncertain. Market analysts like LinkSpartan advise caution, however, warning that the high-flying crypto market looks susceptible to a correction as buyers lose momentum.