A major sell-off on Wednesday has once again stunned the crypto sphere with the Trump family-owned venture World Liberty Financial (WLFI) selling Ethereum (ETH) at a deficit. Initially, the huge sell-offs were spotted by Arkham Intelligence, as the on-chain data platform reported 4:35 AM UTC on Thursday.
Donald Trump Linked Project Cashes Out $8M ETH
As crypto market participants turned to extreme fear levels, the sentiment didnโt spare even the most influential. Today, 5,471 Ether (ETH) tokens were sent to various decentralized finance (DeFi) protocols, such as Aave and CoW Protocol. The bulk sell-offs piled up to just about $8M as Ethereum price was changing hands at $1,465, according to LookOnChain.
10 hours after the huge move, Ethereum is trading at $17 above the price that World Liberty Finance (WLD) sold, bouncing off the $1,398 intra-day lows. Previously, the Eric Trump-led firm spent around $210M to acquire 67,498 Ethereum (ETH) coins at the price of $3,259. This has brought Donald Trump-backed crypto companyโs balance sheet to a $125M deficit.
Bumpy Road Ahead For Ethereum Price Recovery
To understand if the currently ongoing crypto bear show-off will persist, itโs important to note the unfavorable geopolitical conditions. Donald Trumpโs 10% baseline tariffs are just one piece of the puzzle, as China mulls retaliation plans for Donald Trumpโs 104% tariffs on Chinese imports, which the Chinese President Xi Jinping lambasted as โobnoxious bullyingโ.
With the S&P 500 index sinking below 5,000 points and Dow Jones Industrial average losing an off-putting -3,300.69, or 8.05% in just five days, crypto markets are soaking up the effects of the global trade beef. What was originally supposed to be a 34% tariff on Chinese imports quickly escalated to triple digits after China announced their own 34% tariff.
Most Recently, the domino effect has extended to STOXX 600, a European Union (EU) index, dropping over 3% today. As governments across the globe have been known to hold mostly Bitcoin (BTC) and Ethereum (ETH), the two crypto giants have the most exposure to the political scrutiny.
On the technical side, Ethereum (ETH) price has been more prone to drastic downswings, despite an ultra high 0.92 price correlation with Bitcoin (BTC). Other on-chain metrics like net network growth and concentration stalled at a neutral level, according to real-time data from IntoTheBlock.
On The Flipside
- Amid the market mayhem forcing Bitcoin (BTC) and Ethereum (ETH) to retest their major support zones, some crypto whales take it as an opportunity to accumulate at discounted prices.
- One major crypto player, otherwise known as crypto whale, was spotted to cash out Ether 355,000 Ethereum tokens from Kraken’s exchange, worth $519,449,562 at stamped transaction time.
- This is an accumulation move to hold Ethereum on a self-custodial crypto wallet, even though overall large money flows are still on the selling side, with the Chaikin Money Flow flashing -0.20.
Why This Matters
Big holder moves in the crypto oceans usually precede a bigger trend, while digital asset prices are known to respond to global events in whimsical ways.
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