The crypto markets have entered the week with further retracements, leading to widespread panic among retail traders.
Bitcoin and Ethereum, in particular, are experiencing heavy fear, uncertainty, and doubt (FUD) from newer traders who are unfamiliar with mid-sized market corrections.
These traders, having joined the market in the last few months, are reacting emotionally to global market conditions, but history suggests that such panic selling can create opportunities for larger investors.
📉 Crypto markets have opened the week retracing further, instilling panic toward the retail crowd. Particularly Bitcoin and Ethereum are seeing massive FUD from newer traders who joined markets in the past 2-3 months
These new traders have not seen mid-sized corrections before,… pic.twitter.com/L7yHMPLCNR
— Santiment (@santimentfeed) December 23, 2024
When retail traders begin selling due to fear, whales and sharks often step in to accumulate more assets with little resistance. These larger players can create market bounces once they’ve built their positions, though the timing of such rebounds may vary. Currently, market conditions appear favorable for these whales to make moves.
One significant player making waves in the Ethereum market is Justin Sun. Over the past week, Sun redeemed 39,999 $ETH ($143 million) from Lido Finance and Etherfi, depositing the entire amount to HTX.
Since November 10, he has deposited 108,919 $ETH (approximately $400 million) to HTX, often near local price peaks. Currently, Sun has an additional 42,904 $ETH ($139 million) unstaking from Lido, which could soon be deposited to HTX as well.
Over the past 7 days, Justin Sun (@justinsuntron) redeemed 39,999 $ETH ($143M) from Lido Finance and Etherfi and then deposited all to #HTX.
Since Nov 10, as the ETH price began rising, he has deposited 108,919 $ETH ($400M) to HTX at an average price of $3,674, often near local… https://t.co/nMGxZ5YLLa pic.twitter.com/5nu4jT0Doo
— Spot On Chain (@spotonchain) December 23, 2024
Meanwhile, Nexo has been actively moving Ethereum as well. Since December 2, Nexo has deposited 101,756 $ETH ($380 million) into Binance at an average price of $3,737. Just an hour ago, another 7,495 $ETH ($25 million) was transferred to Binance.
Since Dec 2, #Nexo has deposited a total of 101,756 $ETH($380M) into #Binance at an average price of $3,737.
Just an hour ago, #Nexo made another deposit of 7,495 $ETH($25M) to #Binance.https://t.co/94mlJVK5xW pic.twitter.com/7zX6TWL2nR
— Lookonchain (@lookonchain) December 23, 2024
Despite these large movements, a North Korean hacker reportedly lost $458K after going long on $ETH on Hyperliquid, only to be liquidated as Ethereum’s price dropped.
North Korean hackers went long $ETH on #Hyperliquid, turning $476,489 into $18,187 — a loss of $458K in just 2 days!
As reported by @tayvano_, a North Korean-linked address deposited 476,489 $USDC into #Hyperliquid, went long on $ETH at $3,791.8, and was liquidated when the… pic.twitter.com/rXhHzD3AEW
— Lookonchain (@lookonchain) December 23, 2024
In more positive news, Ethereum’s spot ETF saw a net inflow of $62.73 million from December 16 to December 20, maintaining a streak of consecutive weekly inflows. BlackRock’s ETHA ETF recorded a weekly net inflow of $144 million, indicating ongoing institutional confidence. Despite the retail panic, these institutional inflows show that bigger players remain optimistic about Ethereum’s long-term potential.
Ethereum spot ETF had a net inflow of $62.73 million from December 16 to December 20 last week, maintaining net inflow for 4 consecutive weeks. Blackrock ETF ETHA had a weekly net inflow of $144 million.https://t.co/Tvs2oCSxTg pic.twitter.com/8AJ4gab0PS
— Wu Blockchain (@WuBlockchain) December 23, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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