$1T-volume trading firm capitalizes on market crash; invests $20M in two cryptocurrencies
As the week came to a close on Friday, June 14, the cryptocurrency market experienced a significant crash, causing altcoins to plummet to multi-month lows. However, one trading firm saw an opportunity amidst the chaos and decided to buy the dip, allocating nearly $20 million to invest in two specific cryptocurrencies.
Amber Group, a well-established cryptocurrency trading firm, has revealed that it has conducted over $1 trillion in trading volume since 2017. With thousands of clients, the firm had an estimated $5 billion in assets under management (AUM) dedicated exclusively to cryptocurrency in 2022. Recently, during a private funding round, Amber Group’s valuation reached $3 billion, as disclosed in a Blockworks report.
On-chain data identified by Lookonchain revealed that addresses associated with Amber Group were aggressively capitalizing on the market dip. In particular, one specific wallet, identified as ‘0x011d19410fc79f140c08ffa8301e4153f17f4e27’, withdrew 2,638 ETH worth $9.2 million from Binance. Additionally, the same address made two separate withdrawals for Uniswap (UNI) totaling 987,054 UNI, worth $10.6 million, with 547,305 UNI withdrawn from Binance and 439,749 UNI from Gate.io.
Interestingly, Finbold’s analysis of whale behavior on Ethereum and Uniswap over the past two years revealed that Uniswap whales have been selling their tokens during this period, while Ethereum whales have been accumulating. Since June 15, 2022, whales have added 12.82 million ETH to their balances but removed 51.63 million UNI.
As of now, Ethereum is trading at $3,534, recovering from a dip to $3,376, while Uniswap is trading at $10.92, up from $10.24 on June 14. This recent crash marked the lowest price for ETH this month, with UNI hitting a monthly low at $8.84 on June 11.
Although fear dominates retail sentiment based on technical and social indicators, signaling market divergence and asymmetry, whales and institutional players such as Amber Group view this as an opportune moment to buy. They believe that their investments could soon yield substantial returns.
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