Highlights:
- Genesis Trading creditors sold 12,100 ETH worth $31.43 million during ongoing liquidation efforts.
- Ethereum has shown resilience, maintaining prices above $2,600 despite significant sell-offs.
- Whale activity suggests confidence in Ethereum’s future, potentially influencing market sentiment.
A creditor linked to Genesis Trading has sold a large amount of Ethereum, precisely 12,100 ETH, worth about $31.43 million. This sell-off occurred over three days, from September 23 to September 25, 2023. The move follows a substantial repayment received from Genesis Trading during its liquidation process in August.
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The creditor who received the most ETH in the Genesis Trading liquidation compensation in August sold 12,100 ETH (about $31.43 million) in the last 3 days. On August 2, it received 114,502 ETH (about $358.19 million) in liquidation compensation from Genesis Trading, making it the…
— Wu Blockchain (@WuBlockchain) September 26, 2024
Genesis Trading’s Liquidation and Creditor Transactions
In August, Genesis Trading began repaying its creditors as part of its Chapter 11 bankruptcy proceedings. The creditor in question received the most significant compensation during this liquidation. Specifically, on August 2, the creditor’s wallet received a total of 114,502 ETH, worth about $358.19 million. This repayment positioned the creditor as the primary beneficiary of Genesis Trading’s liquidation process.
According to Arkham Intelligence, the creditor executed multiple transactions to sell the Ethereum. The initial transfer began on September 23, when the wallet sent ETH to FalconX, a prominent institutional cryptocurrency brokerage firm. Over the following days, the creditor transferred a total of 12,100 ETH. The last transaction occurred on September 25, involving 7,099 ETH, valued at approximately $18.56 million.
Ethereum’s Resilience Amid Large Liquidations and Market Uncertainty
The liquidation of this significant amount of ETH coincides with a period of uncertainty in the cryptocurrency market. Ethereum has experienced fluctuations, particularly from September 17 to 21, when it saw a rapid price increase. However, since then, the cryptocurrency has remained relatively stable, holding above the $2,600 mark despite the selling pressure from the recent liquidations.
Genesis Trading, which filed for bankruptcy in 2023, faced various challenges linked to its parent company, Digital Currency Group. Last month, as part of its bankruptcy process, Genesis began distributing about $4 billion in crypto assets to its creditors. The size of these repayments and the following sale of ETH show the complicated factors at work in the cryptocurrency market.
Interestingly, despite these large liquidations, Ethereum has shown resilience. It has maintained its price above the $2,600 threshold, absorbing the impact of the selling activity. This stability suggests that the market may be adjusting to the liquidations, with some investors viewing these price points as buying opportunities.
Whale Activity and Future Price Prospects
Recent data from LookonChain indicates that Ethereum whales have been active in the market, continuing to accumulate ETH amid price consolidations. Two intelligent whales, particularly, have demonstrated a strong record of executing profitable ETH trades. Their activity suggests confidence among significant holders, which could influence the overall market sentiment.
2 smart whales who are good at swing trading $ETH both bought $ETH after the $ETH price dropped!
0xe0b5 has swing-traded $ETH 8 times since Aug 12, buying low and selling high each time, with a win rate of 100%, making a total profit of $1.56M!
0xe0b5 bought 10,206 $ETH($26.24M)… pic.twitter.com/IFM9zcsWMW— Lookonchain (@lookonchain) September 26, 2024
The Ethereum market remains vigilant as it absorbs the impacts of significant transactions and continues navigating an environment filled with uncertainty. Investors and analysts closely monitor developments, particularly regarding whale movements and market reactions.
The recent sale of 12,100 ETH by a creditor of Genesis Trading highlights the difficulties in the cryptocurrency market during the liquidation process. As Genesis reorganizes and the market adapts, Ethereum’s strength will be tested. Although these sales have created some ups and downs, the market appears prepared to bounce back, aided by big investors. The success of this recovery will depend on how the market responds to ongoing liquidations and other economic factors that impact cryptocurrency prices.
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