A mysterious cryptocurrency whale has activated an altcoin project that it bought for 1 billion USDC. Funds from USDC flow directly into a selected altcoin, greatly supporting the recent rise.
An anonymous cryptocurrency whale attracts USDC and deposits it in this altcoin
A mysterious fund spotted by blockchain trackers has been directly affecting the price of Ethereum (ETH) for the past two months. The massive wallet is basically a USDC whale that withdraws USD Coin from Circle and converts it to Tether (USDT). It then sends USDT to several exchanges and then spends it on altcoin projects.
According to on-chain analytics firm Lookonchain, the mystery whale started pouring money into the crypto market ahead of the bull market witnessed at the beginning of the year. The massive investor started pulling USDC into a wallet that became active a week before the first withdrawal from Circle on December 7 last year.
1/ A mysterious fund started pouring money into the crypto market ahead of this year's small #BullMarket.
The fund started withdrawing $USDC from #Circle on Dec 7, 2022 and has over 10B $USDC as of today.
Then exchanged for $USDT via 5 addresses, and deposited to exchanges. pic.twitter.com/n4UiVWSbHe
— Lookonchain (@lookonchain) February 9, 2023
The withdrawn USDCs were then exchanged for USDT using five addresses. USDT funds were sent to various crypto exchanges, including Binance and Coinbase. Data from Etherscan shows that the fund has withdrawn over 1 billion USDC from Circle since December 7, 2022.
The fund has withdrawn more than 50 million USDC in the last 24 hours. However, at the time of writing, there was only about $80 worth of crypto in the wallet. When asked about the funds, Lookonchain explained that they are already exchanged for USDT and transferred to crypto exchanges.
Transactions took place before the last Ethereum rally
The latest Ethereum rally stemming from whale transactions occurred earlier this week. The mysterious whale started a series of USDC withdrawals from Circle on Feb. By February 7, it had drawn nearly 100 million USDC. On the same day, a net increase is seen in Ethereum price. ETH rose almost 5% that day, from $1611 to $1688 in 24 hours.
Cryptocurrency whale still unidentified
Speculation abounds about the identity of this mysterious fund and what its true intentions are. Some believe it is a group of whales pooling their resources to take advantage of the bull market, while others believe it could be an institution trying to make a statement in the crypto market.
Whatever the person behind this mysterious fund, its impact on the crypto market cannot be ignored. Its sudden movements caused the ETH price to rise and caught the attention of the crypto community. As the market continues to recover, it will be interesting to see what this mysterious fund does next and how it continues to shape the movement of cryptos like Ethereum.
How about Ethereum?
Ethereum is trading slightly lower at $1,625.68 at the time of writing. Santiment’s volume metric also revealed that Ethereum is experiencing some sort of reversal in terms of volume. Price forecasts for February cryptocoin.comWe have included it in this article.
