Ethereum Price Drop Possibly Due to Large ETH Sell-off
The cryptocurrency market has seen one of the steepest declines in a one-day period since February this year, leading to losses worth almost $40 billion on Sep.5 and Sep.6. Top-ranked cryptocurrency bitcoin dropped to the current $6,550 which bounced back a little today, and Ethereum hit a low of $233, recording its third worst day.
Following the rapid decline in the price of bitcoin, cryptos and tokens also experienced a major hit. Investors are trying to find out the reason behind it
Chinese media massively reported that futures transactions were forced liquidation and wiped out again on the second largest crypto exchange OKEx amid the plunge, which might lead to the crypto selloff.
Many reports hinted that the decision of $90 billion investment bank Goldman Sachs to delay the launch of a bitcoin trading desk triggered the price of bitcoin to fall dramatically, and many stressed the claim that almost $1 billion worth bitcoin was moved from the original Silk Road wallet addresses.
Apart from those above, it is evident that some big whales are selling their holdings and projects based on Ethereum are cashing out. Since August 14, a total of more than 100,000 ETH have moved into the world’s top crypto exchanges. A substantial volume of ETH has flown into the hot wallets of Bitfinex and Kraken recently.
Ove the past two days, 24,000 ETH have been moved out of the fundraising address (0x731a2bA9E49F69019a9892a716d2109b112555Bc) of a crypto exchange named sz.com, among which, 5,000 ETH were traced to have been transferred into Binance, fairly likely for panic cashing out. According to Digix, the project has cashed out 70,000 ETH for $20 million.
As a previous report by 8btc last month, 36% of ETH in the fundraising addresses of 120 ICO projects has been cashed out. The continuous plunge seems the selloff both from projects and retail investors is going on.
Where will the cryptocurrencies go? It remains unpredicted for the fluctuation of the market.