The cryptocurrency market experienced a notable shift as Trend Research, a prominent trading firm led by Jack Yi, completely divested its $2.1 billion leveraged Ethereum position. This decision was finalized on Sunday and has sparked significant attention within the industry.
Data compiled by Arkham indicates that this exit culminated a comprehensive risk mitigation strategy, which became increasingly urgent due to declining liquidity and heightened volatility in the market. The firm”s liquidation process resulted in total losses of $869 million, particularly as Ethereum struggled to maintain its value near the critical $1,750 mark.
This abrupt exit from a substantial long position is particularly striking considering just days prior, Yi had expressed optimistic views regarding Ethereum“s potential to surpass $10,000. However, the mounting pressure from the market and the burdens of leverage compelled a swift and painful decision for the firm.
Despite this large-scale liquidation, on-chain metrics paint a different picture, suggesting resilience among long-term investors. Notably, “accumulating addresses,” which hold at least 100 ETH without making withdrawals, currently control approximately 27 million units of Ethereum. This represents nearly a quarter of the total circulating supply of the asset.
Recent analyses from market experts, including those at CryptoQuant, indicate the current price range may be historically favorable for new capital investment. This scenario marks only the second occasion in Ethereum“s history where trading has dipped below the realized price of accumulation wallets, hinting at a potential for significant market recoveries in the future.
In conclusion, while leveraged traders are grappling with substantial liquidations, strategic investors appear to be capitalizing on these market conditions, absorbing available supply. Observers will now closely watch whether this capitulation among major Asian players signifies a foundational floor for Ethereum, paving the way for a recovery driven by organic accumulation.
