An unknown investor transferred around 20,000 ETH to Bitfinex, worth around $5.5 million at the time of this posting.
This transaction was first spotted by an attorney Zoe Dolan, who has been supervising wallets holding funds that originated in the Ethereum Genesis block for evidence of ’’capitulation’’.
And even though the 20,000 ETH is just a sliver of the wallet’s initial balance, this is not the first time that this unknown investor has funneled a lot of ETH to Bitfinex. Just this May, the wallet moved more than 116,000 ETH( worth around $65 million at the time) out of the original wallet. Most of the money ended up at the exchange in a series of transactions made over the course of a few months.
Furthermore, those funds that have been moved, may not even be the end of this early ETH investor’s liquidation. The 20,000 ETH were initially moved as part of a transaction which included 93,750 ETH. The rest of the money (around $18 million) is still in the wallet. The anonymous investor’s original wallet still has more than 104,000 ETH, which is around $28 million.
ETH Whale Sells into Bear Market
ETH’s value plummeted down by a whopping 50% since the wallet first began funneling its fund to Bitfinex, from an opening price of $573 on May 28 to about $275 today.
Some analysts speculate that ICO-funded startups made the crypto market decline severely by selling their ETH, afraid of running out of funds, CNN reported.
Moreover, this information suggests that long-term holders should have a great portion of the blame. And even though, it hasn’t been determined how much this anonymous investor has actually impacted the market without observing their trading habits, there’s enough evidence that large orders can catalyze significant price swings in the spot markets.
This is especially true now that the global trading volume has plummeted, which is a byproduct of the prolonged bear market. In the daily spot market trading volume, ETH averaged about $1.5 billion, in the past week as reported by CoinMarketCap, down from about $5 billion at the beginning of the year.