Ethereum Whale survives market crash with $41 million ETH – Insider knowledge or smart trading?
In recent days, the broader cryptocurrency market experienced a significant downturn, with the prices of Ethereum (ETH), Bitcoin (BTC), and other cryptocurrencies plunging. However, amidst this market chaos, one particular Ethereum Whale managed to escape unscathed with $41 million worth of ETH. This has raised questions as to whether this Whale had access to insider information or simply made strategic trading decisions.
On August 18th, in the early morning hours, investors in the crypto market witnessed SpaceX selling its Bitcoin holdings worth $373 million, causing Bitcoin to suffer an 8% price drop within minutes. During this time, the total market capitalization of cryptocurrencies dipped to $1.1 trillion, and Ethereum’s value also decreased by nearly 6%.
According to data provided by Lookonchain, a blockchain analytics platform, a smart Ethereum Whale dumped 22,341 ETH worth $41 million just before this market crash on August 14th. Investigations on the blockchain revealed that the Whale transferred its ETH holdings to the Binance exchange and subsequently withdrew $41 million worth of Tether USDT.
While this Whale still incurred a loss of $1.7 million from the sale, had it not moved its funds, it would have suffered a loss of at least $5 million during the subsequent crash.
It is worth noting that this trader has made headlines before for its astute predictions and ability to anticipate market movements. It has boasted a 100% success rate in recent months.
One such example was when the Whale capitalized on the SEC and Spot Bitcoin ETF saga. When ETH plummeted in response to news that the SEC rejected Spot Bitcoin applications from BlackRock and other investment firms, this Whale saw it as an opportunity to buy the dip on June 30th. It purchased 8,188 ETH worth $15.23 million at $1,860 per ETH, which later rose to $1,948.60 within the following hours.
While it remains uncertain whether Whales have access to insider information, their actions might serve as valuable signals for future price movements. Due to the sheer magnitude of their holdings, monitoring the on-chain activities of these major holders could provide useful insights for investors.
At the time of writing this article, the market is still recovering from the recent downturn. ETH has dropped by 1.80% in the past 24 hours and 10.19% within the last 7 days. Bitcoin and XRP have also experienced declines of 11.87% and 19.87%, respectively, over the same period.
The cryptocurrency market remains volatile, and investors should carefully monitor the behavior of Whales and stay vigilant in order to navigate these uncertain market conditions.