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Crypto Whales Sold Holdings Before the Market Crash

Crypto Whales Sold Holdings Before the Market Crash
  • Several large-scale investors (crypto whales) have strategically sold a significant amount of Ethereum (ETH), totaling $106 million, during the market dip.
  • Notable entities such as Cumberland and bankrupt FTX/Alameda estate were among those identified as participating in the sell-off.
  • Despite Bitcoin’s slight rebound from its price decline to around $68,000, its volatility led to a decrease in market capitalization.

In the last 24 hours, Bitcoin and altcoins encountered significant volatility, resulting in a notable decline, with the overall crypto market capitalization dropping by approximately 8%, settling at $2.53 trillion.

This swift market fluctuation may have taken many retail traders by surprise. 

However, insights from on-chain data reveal that certain large-scale investors, colloquially known as crypto whales, foresaw the downturn and offloaded a substantial portion of their holdings.

Crypto Whales Offload Holdings

On-chain analysts reported that several institutional investors strategically sold portions of their holdings during the market downturn. 

See Also: Why Bitcoin Price Dropped Below $67,000, According To Blockchain Firm

Four crypto whales collectively offloaded 31,683 ETH, valued at approximately $106 million.

Among the identified crypto whales were notable entities such as Cumberland, an address linked to the bankrupt Alameda/FTX estate, and two undisclosed altcoin wallets.

Cumberland, a prominent institutional crypto investment firm, deposited 17,206 ETH, amounting to $57.3 million, across various exchanges. 

On the other hand, two crypto whales, ‘0xC3f8’ and ‘0x1717’, moved 7,976 ETH worth $26.6 million and 4,000 ETH worth $13.32 million, respectively, to Binance and other exchanges.

Similarly, the FTX/Alameda estate transferred 2,500 ETH, valued at around $8.33 million. Interestingly, this is not the first time the failed exchange has effectively been able to time the market before drastic sell-offs.

“Since March 1, FTX and Alameda have deposited 15,850 ETH, worth $58 million into centralized exchanges at roughly $3,659, and dramatic price changes tended to follow afterward,” blockchain firm SpotOnChain said.

These significant trading activities exerted additional selling pressure on the market, contributing to the downturn. 

During the reporting period, BTC’s price experienced a sharp decline, plunging to as low as $65,100.

Although the leading cryptocurrency has slightly rebounded to around $68,000 at press time, its volatility led to a decrease in market capitalization to $1.3 trillion. 

According to data from CompaniesMarketCap, this positions Bitcoin behind Meta, the parent company of Facebook, in the global ranking of top assets.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.