ETH Sell-Off Speculation Heats Up with Justin Sun’s $5.9M Transfer to Poloniex

Justin Sun, the renowned entrepreneur and founder of Tron, has invited another scoop, with a second significant move involving Ethereum (ETH). Popular on-chain analytics provider Spot On Chain reports that Sun has allegedly transferred a large percentage of his Ethereum (ETH) deposit from Lido to Poloniex, a major crypto exchange. This has led to widespread Ethereum selloff speculation. 

What’s Sun’s endgame? Will this bold move trigger a market shift? Dive deeper to unpack more.

The Big Withdrawal – What’s Happening?

Onlookers were particularly shocked by the movement of 1,768 ETH, worth approximately $5.9 million, unstaked from Lido. Furthermore, the subsequent transfer of 810 ETH, valued at around $2.7 million, to Poloniex raised speculations of a selloff. The early July price drop for Ethereum, which saw a 10% decline, has further fueled market speculation. This downturn contributed to an 8% drop in the global crypto market cap.

Sun’s ETH Buying History

A report by Spot On Chain revealed that Sun’s massive ETH holdings were severely impacted by the market downturn on July 5. Between February and June 2024, Sun purchased a substantial amount of Ether, totaling 361,137 ETH through three separate wallets. However, the market’s sharp decline on July 5 turned his previous gains into a staggering $66 million loss. Despite a rebound following the launch of new ETFs, the latest Ethereum selloff concerns aren’t groundless.

Ethereum ETF Outflows

Moreover, for the entire last week, Ether ETF flows have been constantly negative. On July 29, the Spot Ethereum ETFs recorded outflows amounting to $98.3 million. Having said that, Grayscale’s Ethereum Trust (ETHE) alone accounted for $210 million in outflows, igniting the outflow streak. Despite these mixed signals, Ethereum’s price has been relatively stable, currently fluctuating between $3,300 and $3,400. At press time, the ETH price dropped 1.04% to $3,325.16 on July 30, with a market cap of $401 billion.

While notable inflows were observed in BlackRock, Fidelity, and Bitwise, registering $58.2 million, $24.8 million, and $10.4 million, respectively, the broader Ethereum market noted a selloff with $33.58 million long liquidations. This potential selloff, along with persistently negative ETF outflows, has created a complex market environment for Ethereum investors.

His strategic moves with ETH and ETF outflows continue to generate interest and speculation. What will be his next big step? The crypto community will undoubtedly be watching closely.

Market mover? Share your thoughts on Sun’s impact!