Big whales appear and crash the market
1. Market downturn and whale behavior
As the cryptocurrency market was sluggish, many whales began to sell their shares. According to the monitoring of on-chain analyst Yu Jin, a whale who bought ETH and related tokens after the 19-4 document of the Ethereum spot ETF was approved at the end of May transferred a variety of ETH ecological tokens worth $11.57 million to Binance for sale in the past hour, causing these tokens to fall to varying degrees.
The main tokens for sale include:
3.514 million LDOs (US$6.23 million)
49,700 AAVE ($4.49 million)
319,800 FXS (850,000 MXN)
2. FLOKI and PEPE’s whale sell-off
According to TheDataNerd's monitoring, when FLOKI plummeted by more than 30% in the past month, an early FLOKI investor transferred 6.28 billion FLOKI (about 1.1 million US dollars) to Binance for suspected sale.
Chain monitoring found that dimethyltryptamine.eth, an early buyer of PEPE, had not traded PEPE in the past 10 months, but its address changed this morning, selling 10 billion PEPE (about $112,000) at a price of 32.73 ETH. The whale turned $45,000 into $26.7 million, achieving an astonishing +58,600% return. After the sell-off, the whale still held 1.99 trillion PEPE (about $21.9 million).
Is the market downturn due to the Mentougou incident?
The recent market downturn was largely driven by concerns about the Mt. Gox settlement, but those concerns are largely unfounded. Leaving aside the fact that Mt. Gox is a distant memory, the likelihood of receiving a large settlement is extremely small. Consider the following:
The compensation amount will not reflect the current market price; ten years from now, it is unrealistic to expect restitution at today's rate. How can anyone hold Bitcoin since 2014 without it being stolen? It is simply not feasible; no one is that naive.
Even if compensation occurs, the possibility of gradual payment is far greater than a one-time payment. The chance of a one-time payment is almost zero.
Mt. Gox is brought up every year by market whales as a strategy to manipulate sentiment and take advantage of market movements.
Specific details about the compensation plan and timeline were unclear.
Retail investors often panic at the slightest sign of trouble.
Most people always look for various reasons for the ups and downs of the market, but never reflect on their own inability to understand the market. Every bull market will have various negative events, but the bull market will eventually complete.
The main players and institutions like to use the media to create panic and greed, cultivate the greed of retail investors in the bull market, and make them buy at high prices; cultivate the pessimism of retail investors in the bear market, so that they dare not buy at the bottom. These methods are repeated year after year, and the only thing that changes is the people who experience them.
I remember that in 2021, someone predicted the price of Bitcoin: it would exceed $47,000 in August, $43,000 in September, $63,000 in October, and even $98,000 in November. His predictions were accurate in August, September, and October, leading more people to believe that Bitcoin would reach $100,000 in November, and as a result, these people were stuck at high prices.
It has only been less than three years, and many people have already forgotten about it, or those who have experienced it have already left the market. Newcomers do not understand this period of history, so they are easily influenced by various news and cannot distinguish the truth from the false.
Take the Mentougou incident for example. Every year, some people hype it up, but there are always people who believe everything they hear. If you want to make money in the cryptocurrency world, you will only be led by the main players if you don’t have the ability to distinguish.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
