- A dormant Ethereum whale moved $228.6M to Bitfinex before the market crash, based on report
- Ethereum suffered a 20% drop as $2.2B in liquidations hit the crypto market in 24 hours.
- The whale’s 50x leveraged short on ETH has earned over $30M amid the ongoing market decline.
A report by blockchain analysis firm Lookonchain revealed in an X post that a dormant Ethereum whale engaged in a transaction, just before the massive liquidations. The whale, whose account has been inactive for over six years, moved 77,736 ETH, which is equivalent to $228.6 million. The money was later transferred to the Bitfinex exchange, preceded by the rapid price decline.
Crypto Market Bloodbath
Cryptocurrency saw a bloodbath in the market and failed to make the bulls bounce back. Across the board, $2.2 billion was lost in liquidations in 24 hours. As for today, major cryptocurrencies are moving down, with Ethereum leading the chart as it declined over 20%.
Long-term traders, especially Ethereum traders, suffered from the crash. Over $480 million worth of long positions for ETH were being cleared because of the price decline. Another result was the forced sales, which only aggravated the situation as investors were unprepared for such market dynamics.
While Ethereum’s drop was severe, Bitcoin also faced a downturn, though it was less significant. Ethereum’s market correction was more pronounced, emphasizing the fragility of the altcoin’s value in the current environment. Bitcoin’s decline was still notable, but it did not experience the same depth of loss seen with Ethereum over the past 24 hours.
Related: Pepe Coin Faces Turbulence as Whales Sell Over Trillion Tokens
Whale Profits from Leverage
While the market was declining, a Ethereum whale had gone short on ETH with leverage of 50x. This position has already generated incremental sales of over $30 million, but from which the volume growth has not yet been realized. As of press time, Ethereum is trading at $2,576, down by 17.10% over the past day..
Source: Lookonchain
However, once the market appears stable, the focus shifts to how Ethereum and other cryptocurrencies will resume. This definitely would attract the attention of experts as it intends to bounce back after a massive pullback. However, it is important to note that it is volatile for the next few days or weeks, affecting the price of the cryptocurrencies.
