During this week, the crypto market suffered a significant drop, affecting all assets. The flagship altcoin, Ether, registered a drop of 10.31% on Thursday. Nevertheless, a “discerning” whale managed to dodge this turbulence by liquidating a significant amount of ETH just before the crash.
Winning Ethereum whale strategy: Anticipation before the storm
The past week has seen a major upheaval in the crypto market. This widespread crash resulted in a loss of approximately $1 billion in total market capitalization. This tumultuous episode was sparked in large part by SpaceX’s decision to liquidate its Bitcoin (BTC) holdings, worth an estimated $373 million.
However, this news had a snowball effect, leading to a sell-off and causing a 12% reduction in the price of Bitcoin, which in turn led to a series of declines for ETH and other cryptos.
For example, ETH went from $1,808 to $1,615. This trend intensified with the largest individual selloff in the ETH market, reaching nearly $55.92 million in a single day. In total, liquidations in the ETH market reached around $308 million.
Amid this turmoil, however, was an Ethereum whale that showed remarkable strategic decision. According to lookonchainshe reportedly sold 22,341 ETH worth around $41 million just before the market downturn.
This initiative was hailed by the analysis team as a “smart” move. Although it recorded losses of around $1.7 million, this action succeeded in mitigating the effects of the widespread crash.
Despite recent setbacks, Ethereum is showing a promising outlook. The coming months promise to be beneficial, driven by developments related to Ether-future ETFs in the United States. Indeed, the United States SEC is preparing to approve the first Ether-future ETF in the United States.
Several asset managers, such as Bitwise, ProShares, Grayscale, VanEck, and Valkyrie, have submitted applications to offer Ether-futures ETFs to US investors. Sources say most of those requests could get approval by October.
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