Ether slides 20% as trading firm moves $46M in ETH
|-
ETH's price drops to lowest since January.
-
A wallet supposedly associated with Jump Trading moved 17,576 ETH to centralized exchanges, according to Spot On Chain.
Ether's (ETH) price cratered as a prominent crypto trading firm moved large amounts of ETH to centralized exchanges in preparation for potential liquidation.
Ethereum's native token, the second-largest cryptocurrency by market value, has dropped 20% in 24 hours, hitting a seven-month low of under $2,100 during Monday's Asian hours, according to CoinDesk data.
In the past 24 hours, a wallet identified as Chicago-based trading heavyweight Jump Trading by onchain sleuth Spot On Chain transferred 17,576 ETH worth over $46 million to centralized exchanges. In June, reports emerged that Jump Trading was being probed by the CFTC.
The wallet has moved nearly 90,000 ETH to exchanges since July 25 and still holds 37,600 wstETH and 11,500 stETH at press time. wstETH is the DeFi-compatible version of Lido's staked ether (stETH).
"The reason for the crazy crypto sell-off seems to be Jump Trading, who are either getting margin called in the traditional markets and need liquidity over the weekend, or they are exiting the crypto business due to regulatory reasons (Terra Luna related)," Dr. Julian Hosp, CEO and co-founder of decentralized platform Cake Group said on X.
The supposed liquidation over Sunday and early Monday has drawn the crypto community's ire. The said time frame is generally characterized by weak liquidity or the ability of the market to absorb large orders at stable prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.