The recent declines in cryptocurrency markets have once again made investors nervous. Ethereum co-founder Vitalik Buterin’s sale of an altcoin and the actions of major investors such as Jump Crypto are shown as the main reasons for this decline.
Buterin sold altcoin NEIRO
The selling wave that started with Ethereum co-founder Vitalik Buterin’s sale of altcoin and meme coin Neiro has deeply affected cryptocurrency markets. The sharp decline in Bitcoin and Ethereum in particular worries investors. The price drop following Buterin’s sale of Neiro created an atmosphere of panic in the market. Experts state that this situation damaged investor confidence and caused the sales to accelerate. On the other hand, this decline in cryptocurrency markets is not only due to Buterin’s sale, but also macroeconomic factors such as the US elections, uncertainty in interest rate cuts and tensions in the Middle East.
Jump Crypto brought Ethereum to exchanges
However, Jump Crypto, one of the largest companies in the sector, is also alleged to have played a significant role in this decline. According to Spot on Chain data, a wallet thought to be affiliated with Jump Crypto moved a large amount of Ethereum to centralized exchanges. This caused a liquidity shortage in the market, causing prices to fall.
Dr. Julian Hosp, CEO of the decentralized platform Cake Group, attributed the reason for this crazy sell-off in the cryptocurrency market to companies such as Jump Trading, which received margin calls in traditional markets and needed liquidity. According to Scopescan data, the largest positions of other major crypto market makers, including Jump Crypto, include USDT, USDC, and ETH. This raises concerns that it could negatively affect the prices of these assets.
As we also reported as Kriptokoin.com, as well as Jump Trading, Wintermute had activated USDT, USDC and ETH yesterday. The company had transferred these coins to Binance. GST is frightening with GALA, USDT and KARRAT positions. Flow Traders holds BTC, MKR and AAVE. These developments show that uncertainty in the cryptocurrency markets has increased and investors should be more careful. Experts warn that the market may fluctuate more in the short term. As a result, the cryptocurrency markets are going through an important test with the sale of Vitalik Buterin and the impact of Jump Crypto. It is of great importance for investors to be careful and seek expert opinions during this process.
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