Dormant Crypto Giant Awakens: ETH Whale Moves $90M to Kraken
After more than 5 years of hibernation, Cryptowell, which holds 39,260 Ether worth nearly $90 million, made waves this week by moving its entire balance to the Kraken exchange. This unexpected revival of the Ethereum wallet immediately sparked speculation among market observers.
But why is this transfer important and what could it mean for Ethereum's price outlook?
Main points
A dormant Ethereum wallet holding $89 million worth of 39,260 ETH has been reactivated after 5 years of inactivity. ETH was transferred to cryptocurrency exchange Kraken on Tuesday morning. This wallet is In 2017, he earned 47,260 ETH for $11 million at the time. Whales transferring crypto to exchanges often indicate selling pressure or switching holdings to other tokens. This large transfer of ETH can have a noticeable impact on the market price and volume of Ethereum if the holder sells or exchanges his assets.
Let's go back to the genesis of this story. Blockchain analysis shows that this whale address received 47,260 ETH for the first time in 2017, which was over $11 million at the time. After that, the entire 39,260 ETH account remained completely inactive until Tuesday morning when it was transferred to Kraken in one transaction.
On-chain analytics tool Lookonchain got the move during Asian morning trading. It is possible that previous transactions at the address do not match any wallets of the exchange. Little connection to Cumberland's business emerges from further blockchain analysis, though.
The early $ETH well seems to be selling ETH again after being dormant for 5 years.
The whale deposited all 39,260$ETH ($87.5M) into #Kraken 30 minutes ago.
The whale earned 47,260 $ETH ($11.34M) at ~$240 from June to August 2017.
If the whale is sold, it will generate a profit of ~$78 million. pic.twitter.com/v0PI4LNTKO
— Lookonchain (@lookonchain) December 5, 2023
So why do crypto wallets offer such appeal and influence? In short, their ability to move the market. Wells collecting tokens can represent strength and stability in possessions. Conversely, currency transfers take precedence over selling activity or converting to other cryptocurrencies. And any rapid change in supply and demand affects prices across the board.
Currently, Kraken holds enough liquidity to facilitate $5 million worth of Ethereum trading without significantly swinging the market. Although the sale of 90 million dollars can bring great volatility. Of course, experienced whalers often break commands into smaller chunks to minimize disruption.
Ultimately, this dormant Ethereum giant's activation and transfer of funds after five quiet years underscores how extraordinary wealth accumulation and volatility can benefit crypto-wells for good or bad.
