invezz.com
30 August 2024 09:56, UTC
The cryptocurrency space maintains sideways actions as Bitcoin sways above and below the $60,000 mark. Amidst the volatility, four Ethena (ENA) whales unstaked and deposited 15.86 million coins (worth over $4 million).
The transaction, which happened through Binance exchange over the past 24 hours, saw the whales encountering losses of over $5 million.
These investors initially withdrew Ethena assets from the same exchange between April and August.
Moreover, they staked the ENA tokens with Pendle Finance to magnify their profits. Nonetheless, the whales suffered losses of over $5 million.
Four whales unstaked and deposited 15.86M $ENA ($4M) to #Binance at big losses in the past 24 hours! Notably, these whales all withdrew $ENA from Binance between April and August 2024, then staked the tokens with @pendle_fi to earn extra hundreds of thousands of $ENA. However,…
Meanwhile, these investors could be tired of waiting for predicted gains or decide to leave to avoid further losses as ENA signals continued plunges.
Whale movements are essential in the crypto market, and enthusiasts use the trends to forecast market direction. Large-scale investors would quit assets with disappointing profitability or those primed for massive declines.
A YouTube video by Investing Made Simple warns about things worsening for digital assets, especially altcoins, in the coming month.
The analysis focused on a key economic event of September: the Fed’s anticipated rate cut. While lower interest rates generally benefit financial assets, he believes that the initial cut could indicate upcoming economic challenges.
History suggests that the market often plunges after previous interest rate cuts.
The economy has navigated the high rates for a prolonged time, and the current situation mirrors past scenarios that triggered financial crises, including the 2008 recession.
Thus, the initial rate cut might catalyze a sudden crash for altcoins before stable recoveries. The analysts added that September is generally challenging for cryptocurrencies, with altcoins recording negative returns.
Nonetheless, the fourth quarter usually witnesses solid revivals. Thus, September dips could open the gates for massive uptrends in the following months.
Despite the bearish stance, the analyst evaluated the ETH-BTC chart and predicted a boom for altcoins. While Ethereum has underperformed against Bitcoin, this might change soon.
Historical data shows Ether and alts hit record lows after prolonged plunges, only to rebound hard. The prevailing pattern shows this bottom could be soon – possibly September- translating to a new altcoin season.
Ethena trades at $0.2427 after dropping nearly 4% over the past day. The altcoin has lost 40% and 25% in the past month and week. Moreover, the 15% decline in trading volume signals a continued bloodbath for ENA.
Ethena’s current outlook likely discouraged its investors, explaining the substantial departures. Nevertheless, cryptocurrency analysts believe the current declines are usual before historical surges in the upcoming months.
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