By selling a big chunk of its Ether holdings, the crypto whale protected itself from a potential $5 million loss.
For cryptocurrency enthusiasts, the actions of large holders, often referred to as "whales," are closely monitored. Recently, one crypto whale made a major move by unsuspectedly protecting itself from possible losses.
Days before the crypto sector took a plunge, a prominent Ether (ETH) holder offloaded a whopping $41 million in ETH. This strategic move spared the crypto whale from a potential $5 million loss, an amount that would have been more substantial had they waited a little longer.
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The transaction was spotted and reported by blockchain analysis firm Lookonchain. It is believed that the whale deposited 22,341 Ether (ETH) on the crypto exchange Binance, converting it to approximately $41 million in Tether (USDT).
Though the trader had to bear a minor $1.7 million dip, the broader picture shows they evaded a more significant potential loss.
On August 18th, the market cap of the crypto realm shrunk by 6% to $1.1 trillion. This figure marked its lowest in the past two months. Specifically, Ether's price fell from $1,820 per unit on August 17th to around $1,680 on August 18th.
Adding to the complexity of the market's behavior, Bitcoin (BTC) saw its value drop from $28,400 to $25,649 within the same time frame. The dominant cryptocurrency, making up half the entire crypto market, managed a rebound, with its value soaring past $26,000 in just a few hours.
It is believed that the dip in crypto prices was influenced by The Wall Street Journal's article claiming that Elon Musk's aerospace technology firm SpaceX wrote down $373 million worth of BTC from 2021 to 2022. This revelation ignited a storm of speculation.
The extent of SpaceX's BTC sell-off remained wrapped in uncertainty. While some believed the company liquidated its entire Bitcoin reserve, others weren't so sure.
The cryptocurrency ecosystem remains a space of rapid change and volatility. The actions of major players, like the Ether whale and even industry giants like Elon Musk, underscore the need for vigilance and astute decision-making for all enthusiasts.
