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A cryptocurrency whale possessing significant quantities of Ether (ETH) liquidated $41 million worth of the asset shortly before the market downturn, thereby evading a possible $5 million loss.
The transaction was highlighted by the blockchain analytics service Lookonchain, which monitors and reports what it deems to be strategic trades. On Aug. 18, the crypto whale transferred 22,341 ETH to the Binance exchange and withdrew approximately $41 million in Tether (USDT).
List of transactions that the crypto whale made before the crash. Source: Etherscan
Although the crypto whale experienced a loss of about $1.7 million in value, the trader successfully sidestepped additional potential losses that could have exceeded $5 million as market prices fell. On Aug. 18, the cryptocurrency market capitalization decreased by 6% to $1.1 trillion, marking the lowest point observed in at least two months.
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Ether, the second-largest cryptocurrency by market capitalization, fell from roughly $1,820 per token on Aug. 17 to around $1,597 the following day. In the same period, Bitcoin (BTC), which constitutes about 50% of the total cryptocurrency market, declined from approximately $28,400 to $25,649 before rebounding to above $26,000 within a few hours.
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The price decline followed a report from the mainstream media outlet The Wall Street Journal, which revealed that Elon Musk’s aerospace company SpaceX had written down $373 million worth of BTC from 2021 to 2022. It remains uncertain whether the entire holdings were liquidated.
Meanwhile, the company’s Bitcoin write-down generated confusion among members of the crypto community. Some media sources claimed that the firm had sold its entire reserve, while others indicated they could not verify the amount sold based on the report’s phrasing. Some users on X (formerly Twitter) criticized Musk on the platform, labeling him as having “paper hands,” a term used to describe individuals who cannot maintain their cryptocurrency investments over the long term.
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