This “whale,” a term affectionately given to large-scale holders of cryptocurrency, originally acquired 100,000 ETH at the nascent stage of Ethereum’s life, during the initial coin offering (ICO). With the ICO price around $0.31, the cost basis of this investment was a mere $31,000, a sum that pales in comparison to the current valuation of these assets.
The timing of such a move is critical. The price chart shows the currency testing a resistance point, attempting to sustain its momentum above the $2,000 mark. The emergence of such a significant player, particularly one initiating transactions of this magnitude, could signal to the market a shift in sentiment or liquidity that may catalyze further price action.
While the transfer of 20,000 ETH is substantial, the current market cap is vast enough that such a transaction alone is unlikely to cause disruptive market waves. However, it does bring attention to the potential for large holders to move markets. Should this whale decide to liquidate a significant portion of their holdings, it could introduce a substantial amount of Ethereum into the market, potentially putting downward pressure on the price.
Conversely, if this whale were to lock in their holdings or disperse them in a way that suggests a long-term hold strategy, market confidence could be reinforced, possibly driving prices upward. The deposit to Kraken might be an initial step toward liquidity, but it does not necessarily predict a major sell-off.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
