- An ETH whale has recently sent the equivalent of over $5.5 million to a cryptocurrency exchange, presumably to take profits.
- The money was part of a large transaction of 93,500 ETH. If the funds are sold at once, the cryptocurrency’s price could drop further.
A recipient of over 314,000 ETH, worth roughly $87.7 million, from Ethereum’s genesis block has recently moved a total of 19,999.899 Ether (about $5.5 million) from his coffers to popular cryptocurrency exchange Bitfinex, which presumably means the amount is set to be sold.
The move was first spotted by California-based attorney Zoe Dolan, who monitors wallets with funds that came from Ethereum’s Genesis Block, which he claims to be monitoring because he’s looking for “capitulation.”
yesterday a recipient of 93,750 ETH from the genesis block wallet moved 19,999.89936988 ETH onto Bitfinex
tx hash: 0x0f287477b0adddf4612fadd79170bba35d2c3f17e7e0405772eb3e88534eb2e3
— Zoe Dolan (@ZoeJDolan) August 23, 2018
Blockchain data reveals the ETH whale who just moved the funds to Bitfinex has in the past moved large amounts to an exchange. Back In May, his wallet moved a total of 116,500 Ether, worth about $32.5 million, to what seems to be Bitfinex after a series of transactions.
Notably, the nearly 20,000 ETH sent to the cryptocurrency exchange may not be the end of the whale’s selloff, as they were part of a transaction that saw 93,750 ETH move from his wallet. If the funds are sent to Bitfinex, Ethereum’s price could see new lows this year.
At press time, according to CryptoCompare data, ETH is the second-largest cryptocurrency by market cap, as it’s currently trading at $279.04, after rising 1.32% in the last 24-hour period. It’s notably close to a year-to-date low, as it started 2018 at about $900 and hit a near $1,400 all-time high before plummeting.
The cryptocurrency’s price decline is believed to have been fueled by ICO-funded projects that, faced with the crypto ecosystem’s ongoing bear market, panic sold their Ether in an attempt to retain some of its value.
This unknown whale’s transactions to Bitfinex seem to show long-term holders taking profits or exiting the crypto space may also be behind it. Despite the price decline, Messari co-founder Dan McArdle has argued Ethereum’s fundamentals haven’t changed, as the factors that could lead to its success haven’t changed.
Per the cryptocurrency’s co-founder Joseph Lubin, Ethereum’s price is being influenced by “trader types” who keep seeing their fortunes change along with its price. Per his words, ETH’s infrastructure has been growing, despite the decline.