Look on chain reported a crypto whale sending 12,000 ETH to Binance on Wednesday. Ether gained 11% Wednesday amid regulatory concerns. Ether options are more bearish than bitcoin.
On Wednesday, a whale investor who began trading Ethereum's native token in 2017 transferred a significant portion of their position to Binance, possibly as a preliminary to liquidation their investment.
This represents 0.01% of the second-largest cryptocurrency by market cap's circulation supply. This address transferred approximately 9,000 ETH to Binance on Tuesday, withdrawing 30 million USDT. Tether is the largest dollar-pegged cryptocurrency.
"A giant whale deposited 12K ETH to Binance 1 hour ago and may sell it," Lookonchain commented on X on Wednesday. Moving coins into bitcoin exchange addresses generally implies a derivatives trading margin sale or deployment. Thus, a significant coin inflow often indicates price volatility.
The whale may have sold rising cryptocurrencies. After falling Tuesday, ether climbed 11% to $3,500 on Wednesday. It traded at $3,535 at press time, per CoinDesk
After reports that the U.S. Securities and Exchange Commission is considering classifying ETH as a security, which would derail plans to list spot ether exchange-traded funds in the country and subject ETH and Ethereum-related projects to stricter regulation, the rally continued.
However, Deribit's options market data indicates traders are more pessimistic on ether than bitcoin {{BTC}}. Ethereum's one-week put options trade at 4% above its calls, while bitcoin's at 2%. Amberdata data shows a similar trend in one-month options.
A put option offers the buyer the right but not the duty to sell the asset at a fixed price on or before a certain date. A put buyer is negative and hoping to profit or hedge against a price reduction.
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