A crypto whale is facing a paper loss of $560,000 after transferring over $2 million worth of SHIB into Coinbase.
According to a recent post from on-chain analyst Data Nerd, there has been significant activity from a crypto whale involving the token Shiba Inu (SHIB). The whale, identified by the wallet address 0x9f55748426BfE3cB78D73a7A3d5c680F4F119A60, has been engaging in notable trades that could test market liquidity.
Referencing data from Arkham Intelligence, this individual recently deposited 101.068 billion SHIB, worth $2.15 million, into a Coinbase account. This transaction follows after the trader purchased the exact token (101.068B) of SHIB for $2.71 million just seven days earlier. Interestingly, investors may often transfer tokens to exchanges when they are preparing to sell. If the trader were to sell their SHIB holdings at current market prices, they could potentially face a significant loss of around $560,000.
Why Dump?
Shiba Inu is currently experiencing a downturn. In an X post, Shiba Inu marketing strategist Lucie described the recent price dip as “bumps on the investment road.” She also provided some insights into the possible reasons behind the recent decline in SHIB’s price, making it an interesting read for anyone interested in the cryptocurrency market.
Lucie listed post-halving sell-offs and miner adjustments as one of the factors that led to the dump. Although the Bitcoin halving event provides a lot of benefits, such as increasing scarcity and potential price surges for BTC and other crypto assets, it also puts a strain on miners. As the rewards are slashed in half (from 6.25 BTC to 3.125 BTC), miners often need to sell most of their BTC holdings to cover their operational costs. This adjustment, especially the sell-offs, can cause massive volatility in the market.
The overall market conditions for SHIB have been somewhat mixed. However, crypto analyst Ali Martinez recommends a potential entry point at $0.000018343, which could lead to a significant increase in SHIB’s value to $0.000072323. This bullish scenario could offer a promising opportunity amidst the current market setbacks.
