Panicked A Major Whale Sold 26600 ETH This Morning Only to Rebuy Later

Bankrupt exchange Mt. Gox this morning transferred 47,228 bitcoins from cold wallets to new wallets, exacerbating market panic. Bitcoin continued its decline, while Ethereum recently dropped below the $3,000 mark. Amid this market sentiment, some whales appear to have made impulsive trades influenced by emotions.

According to blockchain data analyst Yu Jin’s information shared,
a whale liquidated 26,600 ETH this morning in exchange for 82.52 million USDT to reduce their leverage position on lending platform Aave. The short-term sell-off also caused ETH prices to drop by approximately $100.

However, shortly after the sale, they transferred the remaining 33,765 ETH (worth over 100 million yuan) to a new address (starting with 0xa33) and reused these ETH as collateral to borrow 80 million USDT on Aave. They then used these borrowed USDT to buy ETH again, effectively reinstating the leverage they had just cleared earlier in the morning.

There has been much speculation in the community regarding the transaction behavior of this address. Most netizens believe the whale panicked and sold off, only to regret and quickly buy back. Some jokingly suggested that perhaps the wallet had bad feng shui, hence the desire to switch wallets.

Despite a high probability of an Ethereum ETF approval this month, many believe that even if approved, it could replicate the large outflows seen in January for Bitcoin’s GBTC, causing a short-term price drop. However, others refute this view, noting that ETHE’s negative premium has hovered between -2% to -1% for nearly a month, providing sufficient arbitrage opportunities without needing to wait for ETF approval.

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