Last week an ETH genesis whale, one of the lucky ones to have received a significant amount (314,000) of Ether sent 19,999.899 ETH (roughly $5.5 million worth) to the popular crypto exchange Bitfinex. What seemed like a reasonably good indication of upcoming market panic turned out to be a non-event.
Could this be a sign of market strength?
Past ETH Transactions
As reported by Crypto Globe, this isn’t the first major transaction associated with this wallet. The very same while who has moved funds here has, in the past, moved large amounts of crypto onto exchanges. In May of 2018, the wallet moved a total of 116,500 Ether (worth $32.5 million at the time) onto Bitfinex via a series of transactions.
Zoe Dolan is an attorney, based in California. He has been monitoring Ether wallets that contain funds from Ethereum’s genesis block, looking, according to himself, for signs of capitulation. The nature of blockchains means that it is possible, and relatively simple, for anyone to monitor transactions on the network. Dolan is proof of the potential regulatory benefits that would stem from a blockchain-based digital currency.
Given that this same wallet has been tied to other large transactions, including one totaling 93,750 ETH, it seems that a selloff of their ETH could be imminent.
Signs Of Market Strength
Previously, the conclusion of most crypto analysts was that Ethereum’s price slump was largely driven by a number of ICO-funded projects who, in the face of a steep price decline, panic sold their assets.
While it seems like a potential dump of almost 20,000 Ether on the open market should negatively impact Ethereum’s price. The opposite seems to hold true.
ETH has seen a steady increase of 10.84% since the news broke and continues to trend higher showcasing market strength. While this fact might seem insignificant to most it should be noted, that bull markets do not happen with good news, but when the market stops reacting to bad news.