An Ethereum whale has purchased ETH worth 300 million USD through Galaxy Digital's OTC transaction in the last three days.
The current value of this ETH is 274 million USD, recording a temporary loss of about 26 million USD, equivalent to 8.7%.
MAIN CONTENT
Ethereum whales conducted an OTC transaction worth 300 million USD in 3 days.
The current value has dropped to 274 million USD.
The temporary loss amounts to 26 million USD, equivalent to 8.7%.
Who are Ethereum whales and what do their transactions mean?
Ethereum whales are wallets that hold large amounts of ETH, which can significantly affect the cryptocurrency market. In this case, the whale with an address starting with 0xdf bought 300 million USD of ETH through Galaxy Digital's OTC trading channel, a form of off-exchange trading aimed at minimizing the impact on market prices.
This transaction reflects significant interest from major investors, while also showing that mass buying of ETH occurs in a short time with the goal of strengthening market position. The OTC method allows them to avoid immediate price volatility due to large volumes.
Why has the value of ETH decreased, leading to a temporary loss?
According to Arkham's report, the amount of ETH purchased has decreased in value from 300 million USD to 274 million USD, equivalent to a floating loss of about 26 million USD, accounting for 8.7%. The main cause comes from the volatility of the cryptocurrency market, especially the decline in ETH price during the trading period.
The cryptocurrency market is always highly volatile, so large transactions also carry the risk of short-term price declines, leading to the aforementioned temporary loss, although investors may expect a long-term recovery.
Trading through the OTC channel helps whales mitigate negative impacts on ETH prices despite large volumes, effectively protecting investment from temporary market fluctuations.
Cryptocurrency market expert, 2024
How does OTC trading affect the cryptocurrency market?
OTC (Over-The-Counter) trading is a form of direct buying and selling between parties without going through a public exchange, suitable for large transactions to limit price declines and sudden price volatility.
For Ethereum whales, using the OTC channel ensures liquidity and confidentiality while reducing the pressure of large selling or buying on the market, helping to maintain greater stability for ETH prices in the short term.
What can be expected from this temporary loss?
The temporary loss of 8.7% does not necessarily indicate a long-term downtrend. The cryptocurrency market is always volatile, and large buying activity may be a positive signal for price recovery in the future.
Typically, large investors often have a long-term holding (HODL) strategy and take advantage of short-term volatility to increase profits when the market recovers.
Frequently Asked Questions
Who are Ethereum whales?
These are wallets or investors who own large amounts of ETH, capable of impacting market volatility due to their large holdings.
What is OTC trading?
It is a form of direct trading, not through an exchange, helping to minimize price impacts when buying and selling large volumes of cryptocurrency.
Does the decrease in ETH value indicate bad news?
The temporary price drop reflects short-term volatility, not confirming a long-term trend; many investors still see this as an accumulation opportunity.
Why do whales choose to buy ETH through OTC?
To execute large transactions without reducing prices or negatively affecting the public market.
How to track whale transactions?
Can be tracked through reports, on-chain data, and market analysis from organizations specializing in monitoring large wallets.
Source: https://tintucbitcoin.com/ca-voi-eth-lo-26-trieu-usd/
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