A big $ETH holder has again impacted the crypto market, as data from LookOnChain showed the “Longling Capital” wallet has made a big move when prices are down. This massive market activity shows whales’ impact on relative prices and the speculation trades they conduct when the markets are in periods of turbulence.
Whale Pulls $30 Million in $ETH from Binance
Earlier today, a wallet associated with Longling Capital made a withdrawal of 10K ETH which cost approximately $30.76 million from Binance. This transaction caused reactions, especially in light of the downward market trend; Ethereum is currently trading under $3,000 with a 9.70% decrease in the last 24 hours.
But the whale didn’t stop there. Within hours of withdrawing the enormous $ETH amount, the wallet took out $9 million in USDT from the Aave protocol and then transferred it back to Binance. Such a sequence of moves points to the possibility of making and managing leverage and liquidity in the context of the bearish market trend.
Market Context: Ethereum Below $3,000
Ethereum’s latest decline to $2,958 made the bearish momentum even stronger, affecting the majority of digital currencies. A trading volume of more than $21 billion in the last 24 hours continues to move downward, which may be attributed to panic selling and profit-taking. Particularly, whales re-emerge to use this environment to rebalance their portfolios regarding their stocks.
Furthermore, Lookonchain stated that whales had dumped a total of 24,029 ETH, approximately $78M, at an average price of $3258. This selling led to a realized loss of $3.27M, which showed that the market was not as stable as expected. Interestingly, in the same thread, Lookonchain stated that three wallets, which seem to belong to the same whale, sold 10,070 ETH at $3,280, which incurred a loss of $1 million.
Speculation and Whale Strategy
The large withdrawal of $30M ETH by Longling Capital reflects bullish sentiment and confidence in the longer-term value of Ethereum, irrespective of price dips. Moving from borrowing USDT from Aave and depositing it back to Binance may point to a plan, including probable hedging, leveraged trading, or even arbitrage.On the opposite side, other whales sold $ETH at a loss during the volatile moments, demonstrating different strategies; some turn to liquidation, while others try to prepare for possible rebounds.
