In a move that’s caught the attention of the crypto world, World Liberty Financial Inc. (WLFI) – a wallet linked to a Trump-affiliated group – has sold a large chunk of Ethereum at a nearly 55% loss. It’s not just the size of the loss that’s raising eyebrows, but the timing of the sale too.
Why would a major player choose to offload at such a steep discount, especially when the market is already under pressure?
There’s more to this story than just numbers – and the details are both surprising and telling.
Data from Arkham Intelligence shows that the wallet moved 5,471 ETH for about $8 million. The sale happened at an average price of $1,465 per ETH, far below what the group originally paid.
WLFI had previously purchased 67,498 ETH for around $210 million—at an average price of $3,259 per coin. With Ethereum’s current price much lower, the company is now sitting on an unrealized loss of around $125 million.
Why Take a 55% Hit?
This latest sale alone resulted in a loss of about $7.9 million, as the ETH was sold for $8.01 million—much less than what was originally spent to buy it. Some see the move as a way to rebalance their portfolio or free up cash. Others think it could be a reaction to the recent market volatility.
It’s not just WLFI. A well-known Ethereum whale has also exited the market. After holding 10,000 ETH for over 900 days, the whale sold the full amount for a $2.75 million profit.
The ETH was originally bought in two batches during October and November 2022, costing $13 million in total at an average price of $1,295. Interestingly, the whale held through ETH’s rally to $4,000—at one point sitting on a $27 million profit—but eventually chose to cash out with far less.
Other whales have also taken significant actions. One whale had to inject more than $14.5 million to protect a massive 220,000 ETH position from liquidation. Meanwhile, another whale wasn’t as lucky, losing 67,570 ETH (worth around $106 million) after their DeFi position on lending platform Sky got liquidated.
With large holders and groups like WLFI making big exits, everyday investors are watching closely. Are these moves isolated, or could they lead to a larger wave of selling across the market?
Crypto analyst Ali Martinez shared on X that $1,200 could act as a key support level for ETH. As prices continue to fall, this level might help stabilize Ethereum and prevent a deeper drop.
Ethereum is currently trading at $1,472, down more than 6% in the past day alone. Despite hopes for a major crypto rally after Donald Trump returned to office, ETH has dropped over 56% since the start of the year.
Turns out, even the biggest players can blink first when the market starts looking shaky.
WLF hasn’t shared an official reason, some believe that it could be a strategic decision to rebalance their portfolio, free up liquidity, or reduce exposure during heightened market volatility. While others see it as a potential panic move amid market chaos.
WLF purchased 67,498 ETH for about $210 million at an average price of $3,259. But with the recent sale of 5,471 ETH at $1,465 each, they locked in a 55% loss, roughly $7.9 million down on this sale alone. Overall, their unrealized loss is around $125 million.
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