Last night, a brand new wallet suddenly withdrew 3,201 Ethereum from the exchange, worth about 8.1 million dollars. This is not a small move, especially during recent market instability.
This isn't the first time this has happened:
At the end of May, someone withdrew nearly 20,000 ETH from a major exchange using a new wallet.
In mid-May, another institution withdrew nearly 20,000 ETH from Binance.
Usually, such large withdrawals to private wallets are considered a 'bullish signal'—large holders may want to stock up in anticipation of a price rise or trade privately to reduce selling pressure on the exchange. New wallets can also hide their identity.
But don't be too optimistic; the risks are high:
Market crash possibility: There have been cases where scammers withdrew coins and quickly laundered and sold them, leading to an 8% drop in ETH in one day. Is this time a trick?
The market is very fragile: ETH's current price is barely holding up. If it drops another 20%, many people who borrowed money to trade could be forced to liquidate, potentially triggering a chain reaction of collapses, leading to a harsher drop.
Exchange money decreased: Large holders withdrew coins, leading to a reduced circulation of ETH in the exchange. If someone wants to sell a large amount, the price could easily drop.
In the long run, ETH still has trump cards:
Its destruction mechanism is still in effect (the total amount is slowly decreasing).
It is still the absolute leader, with locked funds accounting for over 60% of the entire market, and the most developers.
Currently, the ETH to Bitcoin exchange rate is near a five-year low; historically, these 'oversold' moments often represent opportunities.
Click on the profile picture to follow, and I'll let you know the specific buy and sell points.#ETHETFsApproved