Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to on-chain data provider Lookonchain, a cryptocurrency address with a substantial crypto balance regarded as a whale initiated a withdrawal of 8,698 ETH from Binance, one of the world’s largest and most well-known cryptocurrency exchanges.
The intent was to buy more ETH, according to Lookonchain. In achieving this, the whale deposited 31.8 million USDT to Binance and withdrew 8,698 ETH worth $15.94 million. The imbalance in both transactions could imply that the whale bought other assets or engaged in other activities.
Depositing assets on an exchange frequently implies a willingness to sell, as was the case with the whale’s USDT deposit. The withdrawal of ETH suggests a willingness to accumulate.
Some large holders may prefer to hold their assets long-term, removing them from exchanges as a way to store them securely and reduce the temptation to engage in short-term trading.
The possibility also lies in the fact that the withdrawal could be part of a larger trading strategy or a speculative move based on market trends.
According to Lookonchain, the whale deposited 24,495 ETH worth $45 million to Binance on Nov. 2 after the ETH price increased in a profit-taking move. It further adds that the whale traded ETH eight times since Feb. 12, seven of which were profitable, with a win rate of 87.5% and a total profit of $13 million.
In the world of cryptocurrencies, large holders, often referred to as “whales,” can have a significant impact on the market.
At the time of writing, ETH was responding to the massive whale buy with a 2.64% spike in the last 24 hours to trade at $1,840 at press time.
Crypto markets experienced a volatile week as the current rally expanded beyond Bitcoin into smaller-cap assets. This caused Ethereum fees in the week to climb by 30% as many smaller-cap tokens saw a surge in on-chain trading volumes.
About the author
Tomiwabold Olajide
