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On Wednesday, a significant crypto whale moved 12,000 ETH to Binance, as reported by Lookonchain. Despite ongoing regulatory concerns, Ether saw an 11% surge in value on the same day.
The investor, identified as a whale due to their substantial holdings acquired since 2017, transferred a sizable amount of ETH to Binance, possibly indicating an intention to liquidate the holding. The transaction, conducted by the address x50b42514389F25E1f471C8F03f6f5954df0204b0, amounted to $42.8 million at the time of transfer, constituting about 0.01% of the total circulating supply of Ethereum.
This transfer follows a similar move just a day prior when the same address shifted nearly 9,000 ETH to Binance, accompanied by the withdrawal of 30 million USDT (Tether), the largest dollar-pegged cryptocurrency.
The action prompted speculation within the crypto community, with Lookonchain suggesting the possibility of the whale selling the ETH. Such transfers to cryptocurrency exchanges often precede the selling or utilization of coins for margin trading in derivatives markets, potentially leading to increased price volatility.
Despite regulatory uncertainties, Ether’s value soared to $3,500 on Wednesday, marking an 11% increase from the previous day’s decline. The market rally persisted despite reports of the U.S. Securities and Exchange Commission’s consideration of classifying ETH as a security, a move that could impact the listing of spot ether exchange-traded funds and introduce stricter regulations for Ethereum-related projects.
However, data from Deribit’s options market indicates that traders maintain a more bearish outlook on Ether compared to Bitcoin (BTC). Options expiring in one week and one month show a premium on Ether’s put options, suggesting a prevailing sentiment of caution among traders.
A put option grants the purchaser the right, but not the obligation, to sell the underlying asset at a predetermined price on or before a specified date, indicating a bearish stance and a strategy to profit from or hedge against potential price declines.
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