A recent transaction by FTX and Alameda Research liquidators has sparked conversations within the cryptocurrency community due to its close timing with a drop in Ethereum‘s price. Spot On Chain, a prominent crypto analysis firm, reported that these entities deposited roughly 2,500 ETH, valued at about $8.56 million, to Coinbase just before a notable decrease in Ethereum’s market value.
Strategic Exit or Coincidence?
Observers noted that the liquidators appear to demonstrate a remarkable sense of timing to exit the market, closely aligning their transactions with subsequent price declines. This observation was reinforced by Spot On Chain’s analysis, which showed that since March 1, FTX and Alameda have deposited a total of 15,850 ETH to centralized exchanges, cumulatively worth $58 million, at times preceding significant price fluctuations.
The most recent of these transactions occurred as Ethereum approached a previously established low, which was shortly followed by a breach in support levels and a sharp 11% decline in Ethereum’s price, plummeting it to $3,100.
Ethereum’s Bounce Back from Support
Despite the sudden dip, Ethereum managed to find its footing, rallying from the support level it hit on March 20. The price successfully bounced back, climbing to $3,269 at the time of the report. This movement further illustrates the volatile nature of the cryptocurrency market, with Ethereum recovering from the fall triggered by the FTX and Alameda liquidation strategy.
Points to Take into Account
- FTX and Alameda Research liquidators chose to transfer a significant amount of ETH to Coinbase just before a market downturn.
- Their transactions since March have consistently preceded notable dips in Ethereum’s price.
- Ethereum’s resilience is evident as it recovers after hitting a support level, despite the liquidators’ actions.
The incident of FTX and Alameda’s liquidation transactions raises discussions on the potential influence and predictive actions of major players in the cryptocurrency market. The precise timing and the consequent price movements prompt further scrutiny from investors and analysts alike.