On October 9, 2023, the Ethereum Foundation swapped approximately 1,700 ETH worth $2.7 million for the USDC stablecoin. This large-scale sell-off, combined with selling pressure from major whale addresses, caused Ethereum’s value to decline by 6%, falling to around $1,520.
The Ethereum Foundation has not disclosed the specific reasons behind the sell-off, but it is possible that the organization is selling ETH to raise funds for its operations. The Ethereum Foundation is a non-profit organization that supports the development and maintenance of the Ethereum ecosystem. It relies on donations and funding from ETH sales to fund its work.
Another possibility is that the Ethereum Foundation is selling ETH to rebalance its portfolio. The Foundation holds a large amount of ETH, and it may be looking to diversify its holdings by selling some ETH and buying other assets, such as other cryptocurrencies, fiat currencies, or stocks and bonds.
It is also possible that the Ethereum Foundation is selling ETH to hedge against other risks in the cryptocurrency market. For example, the Foundation may be concerned about the upcoming Merge upgrade and is selling some ETH to reduce its risk in case the upgrade does not go smoothly.
Whatever the reason for the sell-off, the fact that the Ethereum Foundation is selling ETH is likely to have a negative impact on the market price of Ethereum. This is because the Ethereum Foundation is one of the largest holders of ETH, and its sales can put significant downward pressure on the price.
The sell-off from major whale addresses is also likely contributing to Ethereum’s price decline. Whales are individuals or entities that hold large amounts of cryptocurrency. They can have a significant impact on the market price of a cryptocurrency by buying or selling large quantities of coins.
It is difficult to say for sure why whales are selling ETH, but there are a few possible reasons. One possibility is that they are taking profits after a recent price increase. Another possibility is that they are rebalancing their portfolios. It is also possible that they are selling ETH because they are concerned about the future of Ethereum or the cryptocurrency market as a whole.
Overall, the sell-off from the Ethereum Foundation and major whale addresses is a reminder that the cryptocurrency market is volatile and unpredictable. Investors should always do their own research before investing in any cryptocurrency.
The sell-off from the Ethereum Foundation and major whale addresses comes at a time when the cryptocurrency market is already facing a number of challenges. These challenges include:
- Rising interest rates in the United States and other countries.
- The ongoing war in Ukraine.
- The recent collapse of the TerraUSD stablecoin and the Celsius Network lending platform.
These challenges have led to a decline in the prices of all major cryptocurrencies, including Ethereum.
It is possible that the sell-off from the Ethereum Foundation and major whale addresses could accelerate the decline in Ethereum’s price. However, it is also possible that the market will absorb the selling pressure and Ethereum’s price will stabilize.
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