Crypto Whales Strategically Offload Holdings, Contributing to Market Downturn
In the last 24 hours, the cryptocurrency market experienced a significant downturn, with Bitcoin and altcoins facing notable volatility. The overall crypto market capitalization dropped by approximately 8%, settling at $2.53 trillion. This sudden fluctuation caught many retail traders off guard, but insights from on-chain data revealed that crypto whales, large-scale investors, had anticipated the downturn and strategically offloaded a substantial portion of their holdings.
On-chain analysts reported that four crypto whales collectively sold 31,683 ETH, valued at approximately $106 million. Among these whales were entities such as Cumberland, linked to the bankrupt Alameda/FTX estate, and two undisclosed altcoin wallets. Cumberland, a prominent institutional crypto investment firm, deposited 17,206 ETH across various exchanges, totaling $57.3 million. Additionally, two other whales, ‘0xC3f8’ and ‘0x1717’, moved significant amounts of ETH to exchanges, contributing to the selling pressure on the market.
The FTX/Alameda estate also transferred 2,500 ETH, worth around $8.33 million, further impacting the market. These actions led to a sharp decline in BTC’s price, dropping to as low as $65,100. While Bitcoin has slightly rebounded to around $68,000, its volatility caused a decrease in market capitalization to $1.3 trillion, positioning it behind Meta in the global ranking of top assets.
Despite the market turmoil, computer scientist Edward Snowden pointed out that the price of Bitcoin had remained relatively stable over the week, questioning the industry’s reaction to the dip. As the crypto market continues to navigate through these fluctuations, investors are advised to verify facts independently and consult with professionals before making any decisions based on the current market conditions.
