Ethereum Whale Offloads $41 Million ETH Prior to Crypto Market Dump
The crypto world woke up to a downturn in the market, marked by a wipeout of $1 billion in the total crypto market cap.
In the midst of one of the most significant market declines in 2023, which saw Bitcoin and Ethereum experience steep declines of more than 7% and 5%, a notable crypto whale strategically shielded itself from the fallout.
A large holder of ETH managed to avert the impact by liquidating assets just before the crash. The timely move, although unprofitable, saved the whale from the worst of the market turmoil.
An in-depth analysis conducted by data analytics Lookonchain unveiled the actions of the Ethereum whale who swiftly offloaded 22,241 ETH, valued at a staggering $41 million, mere moments before the crash occurred.
Interestingly, the wallet address incurred a loss of $1.7 million due to the less-than-optimal sale but still managed to avoid the worst part by demonstrating a calculated approach to risk management.
The whale can potentially capitalize on the downturn by purchasing the same tokens at a significantly reduced price.
Possible Causes of the Crash
The recent crash in the cryptocurrency market can be attributed to the news of Elon Musk’s spacecraft manufacturer SpaceX selling all of its Bitcoin holdings. Musk’s influence and actions on the crypto market have been evident.
SpaceX’s decision to divest from Bitcoin, coupled with Tesla’s earlier sale of 75% of its Bitcoin holdings, raised concerns among investors and led to a sharp decline in Bitcoin’s price, dropping to a two-month low of $25,392.05.
SpaceX’s decision to sell out Bitcoin, along with the devaluation of the Chinese yuan and the recent bankruptcy filing of Chinese property giant Evergrande, appears to have influenced investor confidence and contributed to the decline in the cryptocurrency market.
Moment to “Buy the Dip”?
According to Watcher Guru, a surge in “Buy the Dip” mentions reached a 4-month peak. During bearish times, assets are often bought due to their lower prices. Currently, almost 1% of crypto discussions on social media focus on buying the dip. This is the highest percentage since April 2023, suggesting that investors are aiming to expand their crypto holdings now.
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