news 
Panic Strikes Retail Traders As Ethereum Faces Major FUD, But Whales Seize The Opportunity
December 24, 2024 – Will Izuchukwu
The crypto markets have entered the week with further retracements, causing widespread panic among retail traders. Bitcoin and Ethereum, particularly, 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.
As the situation unfolds, however, it appears that whales and sharks are capitalizing on the current FUD. Large investors and institutions often take advantage of such situations by buying up undervalued assets at discounted prices, waiting for the market to recover and then selling their stakes for a significant profit.
Recent data suggests this exact scenario is unfolding in the Ethereum market. One significant player making waves is Justin Sun, who has been aggressively accumulating Ethereum over the past few months. Over the past week alone, he redeemed 39,999 ETH (approximately $143 million) from Lido Finance and Etherfi, depositing it all to HTX.
This aggressive accumulation of ETH comes at a time when other traders are selling their assets in panic. It is important to note that Justin Sun has already deposited 108,919 ETH (approximately $400 million) into HTX since November 10, which he purchased during the asset’s downturn. This significant move could be seen as a sign of confidence in Ethereum’s future performance.
In contrast, North Korean hackers have been caught on the wrong foot. A report suggests that one such hacker lost a staggering $458,000 after going long on ETH at $3,791.8 and being liquidated due to Ethereum’s recent price drop.
On a more positive note, institutional investors remain optimistic about Ethereum’s long-term potential. Inflows into Ethereum spot ETF reached a net of $62.73 million from December 16 to December 20, marking the fourth consecutive week of such inflows. The BlackRock ETHA ETF recorded a weekly net inflow of $144 million, indicating a growing confidence in Ethereum.
While retail traders are caught up in panic selling, whales and institutions are capitalizing on this opportunity by accumulating undervalued assets. It remains to be seen how the situation will unfold; however, data suggests that it may be wise for investors to follow the footsteps of institutional investors and accumulate ETH during this period of FUD.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Source: nulltx.com
