Altcoin
TRON Founder Gives Hint About This Altcoin: The Selloff Is Coming!
Tron DAO founder Justin Sun has drawn attention in the cryptocurrency markets with a series of transactions he made in recent days. Sun, who released a significant amount of his Ethereum, later transferred some of those assets to the popular Encrypt exchange Poloniex. These moves have led to speculation that a major Ethereum sell-off is imminent in the market.
Ethereum Moved by TRON Founder
According to the data, TRON founder Sun withdrew 1,768 ETH (worth approximately $5.9 million) from Beach. Later, part of this amount, 810 ETH (worth about $2.7 million), was sent to Poloniex. This situation attracted the attention of the experienced investor. The sharp drop in the price of Ethereum, which occurred in early July and caused a 10 percent drop in the price of Ethereum, further increased concerns on the market. This drop led to an 8 percent loss in the value of the global cryptocurrency market and caused Justin Sun to lose about $66 million.
According to the data, Sun has accumulated a total of 361,137 ETH between February and June 2024 across three different wallets. The distribution of this amount is as follows: 169,604 ETH were purchased at an average price of $2,870 in February, 176,117 ETH at an average price of $3,177 in April, and 15,416 ETH at an average price of $3,474 in June. Sun is said to have made a profit of around $58 million from these investments the day before the big drop. However, the sharp drop on July 5 turned this profit into a loss of $66 million. Ethereum price fell below $2,800 at the peak of the drop. Although it recovered above $3,300 with the launch of new ETFs, this drop caused a “selling on the news” reaction among investors.
What is the latest Ethereum price situation?
In addition, despite the recovery, the price of ETH is lower than the average price of Sun’s third purchase. Therefore, recent concerns about the sell-off are not unfounded. Considering that Sun is generally closely tied to Ethereum assets, these sell-offs are thought to be aimed at minimizing losses. On the other hand, outflows in Ethereum index funds (ETFs) are also attracting attention. On Monday, July 29, there was an outflow of $98.3 million in spot Ethereal ETF. Grayscale’s Ethereum Trust (ETHE) caught the eye with $210 million outflow.
However, there were inflows of $58.2 million, $24.8 million, and $10.4 million to funds such as Blackrock, Fidelity, and Bitwise. Despite this complicated picture, the price of Ethereum is relatively stable. As of Tuesday, July 30, the price of ETH is trading at $3,325.16, down 1.04 percent. The market cap is $401 billion. In addition, according to Coin glass data, there was a liquidation of $33.58 million in long positions in the market, while $6.87 million in short positions were liquidated. While Justin Sun’s moves raise concerns about potential selling pressure on Ethereum, it is a matter of curiosity how the markets will behave in the coming period.
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