Vitalik Buterin, co-founder of leading altcoin Ethereum, has continued to transfer Ethereum (ETH) to various centralized exchanges (CEX) over the past month in a series of mysterious maneuvers, leaving the cryptocurrency community mired in speculation. Buterin’s deposit of 400 ETH to Coinbase, worth approximately $632,000, marks the latest chapter in this mysterious saga, following an initial transfer of 600 ETH about a month ago. Here are the details…
Buterin made altcoin transfers
Over the past weeks, Buterin’s wallet has been involved in several asset transfers that have caught the attention of cryptocurrency enthusiasts:
- September 19: Buterin transferred 300 ETH to Kraken, one of the leading cryptocurrency exchanges.
- September 22: An amount of 278 ETH, equivalent to $427,160, was sent to wallet address 0x3F6. Interestingly, the same wallet received 350 ETH (worth $560,000) from Buterin three weeks ago and was later exchanged for USDC on Uniswap v3.
- September 12: A wallet linked to Vitalik sent 2000 ETH to the intermediary wallet address 0x5567, which is commonly used to deposit funds to Bitstamp. According to Lookonchain data, this intermediary wallet transferred a total of 2700 ETH worth $4.7 million to Bitstamp over the past month.
- September 25: Lookonchain reports that Vitalik Buterin deposited 400 ETH to Coinbase, worth approximately $632,000. This move may be innocent, but large sums moved to centralized exchanges often indicate preparations for a sale are being made.
vitalik.eth(@VitalikButerin) deposited 400 $ETH($632K ) to #Coinbase 30 mins ago.https://t.co/q6Y6MuNrdF pic.twitter.com/idy96sxZxO
— Lookonchain (@lookonchain) September 25, 2023
What was Buterin’s asset allocation and impact on the market?
It is clear that the Ethereum co-founder has been gradually allocating assets to different exchanges, including Coinbase, Kraken, and Bitstamp. However, the reason behind this “accumulation” of funds on CEX platforms remains a mystery. Vitalik Buterin’s mysterious actions have sparked a lot of speculation within the cryptocurrency community. Some fear that it may be preparing to sell a significant portion of these assets. He is also concerned that it could potentially put selling pressure on the crypto market. While the exact purpose of these transfers remains unclear, they do provide an insight into Vitalik’s perspective on market trends. Therefore, it is closely watched by the crypto community.
Moreover, Ethereum’s price, sentiment, and momentum are currently stagnating. Because it could not move together with Bitcoin last week. This raised concerns among analysts. “There are no signs of buying pressure from Ethereum whales yet,” analyst @Ali_Charts said late last week. ETH whales with a balance of more than 10,000 have declined this month in line with the asset’s price decline. “Immortal Crytpo” also predicted further downside for Ethereum, suggesting that prices could drop as low as $1,300 to $1,500 in the next few weeks. However, some investors remained undeterred, expressing their intention to accumulate assets at these levels.
Is short squeeze coming?
Meanwhile, on-chain analysis platform CryptoQuant also attracted attention. Because he issued a warning about a potential short squeeze for Ethereum. In addition, analysts noted negative funding rates in derivative markets. Thus, they stated that there is a pessimistic outlook on ETH. This potentially triggers a series of short liquidations. It also leads to a sudden price recovery. The cryptocurrency market continues to develop. Additionally, Vitalik Buterin’s recent moves and Ethereum’s performance remain the subject of intense scrutiny.
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