A seasoned crypto whale managed to dodge potential losses amounting to over $5 million as Ethereum’s value took a sharp nosedive. The whale, holding an impressive cache of Ether, offloaded $41 million worth of the asset just days before the market succumbed to a 6% plunge, sending shockwaves through the industry.
Blockchain analysis platform Lookonchain, known for identifying smart trades, flagged the move. On August 18, the enigmatic trader made a calculated deposit of 22,341 ETH to Binance, swiftly converting it into approximately $41 million in Tether (USDT). This audacious transaction saw the crypto whale relinquishing a fraction of their holdings, resulting in a $1.7 million loss, but successfully sidestepping a much heftier setback.
Ether, the crypto giant that stands as the second-largest player by market capitalization, saw its value tumble from $1,820 to $1,597 overnight on August 17. Meanwhile, Bitcoin, accounting for roughly half of the crypto market, faced its own decline, sliding from $28,400 to $25,649 before staging a swift comeback, crossing the $26,000 threshold within hours.
The market turmoil was catalyzed by a revelation from mainstream media titan The Wall Street Journal. The report unveiled that Elon Musk’s SpaceX had penned a staggering $373 million write-down of its Bitcoin holdings between 2021 and 2022. The crypto community was thrown into disarray as conflicting narratives emerged regarding the fate of SpaceX’s digital treasure trove.
While some outlets declared that the entire Bitcoin stash had been liquidated, others grappled with the ambiguity of the report’s phrasing. On the digital battleground of X (formerly Twitter), crypto aficionados did not hold back, questioning Musk’s resolve to HODL, a term synonymous with long-term crypto ownership. Accusations of “paper hands” flew, highlighting the volatility and speculation surrounding high-profile figures’ involvement in the crypto realm.