Ethereum Whale Makes $50 Million Splash, Moves Holdings to Self-Custody as Price Rebounds | Cryptoglobe

Ethereum Whale Takes $50 Million Dive, Transfers Holdings to Self-Custody following Price Recovery | Cryptoglobe

A prominent cryptocurrency holder, known as a whale within the industry, recently moved 16,449 Ether (ETH) worth approximately $50.3 million out of leading crypto exchange Binance and into self-custody. This transfer occurred as the price of the second-largest cryptocurrency rebounded from a previous decline, surpassing the $3,000 threshold. The move also took place amidst growing expectations for the introduction of spot Ether exchange-traded funds (ETFs) in the United States.

On-chain analytics firm Spot On Chain reported that this significant Ether accumulation indicated the whale’s initial token acquisition. The funds were sent to a new wallet, suggesting a long-term investment strategy rather than an immediate sale.

The anticipated approval of an ETF for Ether is projected to attract institutional investors, potentially driving up the cryptocurrency’s price. Currently, Ether is valued at $3,100 after experiencing a roughly 9% decline amid the broader cryptocurrency market downturn this past week.

Expectations are high for spot Ether ETFs to receive approval this week, as several issuers have recently filed amended S-1 forms. However, these filings do not yet provide fee information, indicating that another round of filings may be required.

Interestingly, long-term Ethereum investors currently control approximately 78% of the circulating supply, indicating that a majority of ETH is held by those who have kept their assets for over a year. Recent data from on-chain analysis firm IntoTheBlock reveals that long-term holders (LTH) have been accumulating more Ether as its price dropped amidst the broader market downturn. These LTH are less likely to sell their coins compared to short-term holders. The dominance of LTH is viewed as a positive indicator for Ethereum, reflecting increased investor confidence. Furthermore, their significant concentration of ETH effectively removes a considerable amount of the cryptocurrency from circulation, thereby limiting potential downward pressure on its price.

Image Source: Unsplash.