Smart money has made significant profits from ETH and WBTC trading in the past week, amounting to hundreds of millions of USD.
On-chain data indicates that whales or organizations have sold over 38,000 ETH, realizing nearly $37 million in profits, while also executing profitable WBTC transactions exceeding $14 million. They have withdrawn a total of over 77,000 ETH from Kraken since the beginning of the year.
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Smart money sold 38,582 ETH in the past week, realizing $36.57 million in profits.
Has withdrawn more than 77,700 ETH from Kraken since the beginning of the year at an average price of $2,600/ETH.
Most of the remaining on-chain ETH is held at the Aave protocol.
What is smart money and how have they traded with ETH and WBTC?
Smart money typically consists of experienced investors or organizations that engage in professional trading based on deep analysis and on-chain information. According to on-chain expert analysis @ai_9684xtpa, smart money bought WBTC at low prices and sold it for a profit of $14.26 million.
Notably, smart money also sold 38,582 ETH in the past week, equivalent to $138 million, with profits reaching $36.57 million. This activity shows that this is a large investment organization, using a strategy of buying at low prices and effectively taking profits in a volatile market.
Why is the strategy of withdrawing ETH from Kraken important?
This is the first year that smart money has withdrawn a total of 77,700 ETH from Kraken, equivalent to $202 million at an average price of about $2,600/ETH. The action of withdrawing a large amount of ETH from centralized exchanges indicates a shift in investment strategy, moving to hold on personal wallets or monitor decentralized protocols.
The remaining on-chain ETH is currently 25,054 units, most of which are in the Aave lending protocol. This reflects the growth trend of DeFi and the confidence of large investors in the DeFi ecosystem.
Smart money not only takes advantage of short-term volatility but also demonstrates a long-term strategy through intelligent asset allocation between centralized exchanges and DeFi.
Analysis by @ai_9684xtpa, On-chain Analyst, August 2024
How can the trading and asset management of smart money impact the cryptocurrency market?
Transactions such as selling ETH for large profits and withdrawing funds from centralized exchanges can lead to price volatility and changes in liquidity in the market. This is also a sign of credibility and high expertise in interacting with the cryptocurrency capital market.
Smart money maintaining a large amount of ETH in protocols like Aave contributes to increasing liquidity stability for DeFi, while also showing confidence in the future trend of DeFi.
What factors indicate that this is a transaction by a professional organization?
The total amount of ETH withdrawn has reached 77,700, with an average purchase price of only $2,600, and profits amounting to tens of millions of USD indicate that this is not an individual's trade but rather an organization with large financial resources. Additionally, continuous actions over a long period also demonstrate long-term strategic goals.
The amount of ETH held off-exchange at the Aave protocol demonstrates an understanding of modern financial tools as well as the professional portfolio management strategy of this entity.
Frequently Asked Questions
What is smart money?
Smart money refers to investors or organizations that have large capital, extensive experience, and the ability to conduct in-depth analysis from on-chain data to optimize profits.
How to identify smart money transactions?
Based on the large trading volume, high profits, and continuous withdrawal of funds from centralized exchanges to personal wallets or DeFi.
Why is withdrawing ETH from Kraken important?
This indicates a change in investment strategy, reducing security risks and increasing trust in decentralized solutions.
What does distributing ETH into Aave mean?
This indicates a preference for decentralized lending services, increasing liquidity and diversifying investment portfolios.
How does smart money affect market volatility?
The trading and asset management actions of smart money can have a significant impact, affecting liquidity, prices, and both short-term and long-term market trends.
Source: https://tintucbitcoin.com/ca-voi-eth-ban-38-582-eth-tuan/
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