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Intensifying Crypto Sell-Off Prompts Trading Firms to Deposit Millions in BTC, ETH, and ARB to Exchanges

Sep 12, 2023 at 10:57 am

Monday witnessed a substantial decline in Bitcoin, marking its lowest point in three months, while Ether also experienced a notable tumble, reaching its weakest level since March.

According to blockchain data, key players in the cryptocurrency market, such as Jump Trading, Wintermute, and Abraxas Capital, executed significant deposits of Bitcoin (BTC), Ether (ETH), and Arbitrum’s ARB token across various crypto exchanges amidst the market sell-off.

Abraxas Capital, an asset management entity, transferred a total of 14,130 ETH, amounting to approximately $22.5 million, to Bitfinex through two distinct transactions. This information was provided by blockchain analytics company, Arkham Intelligence. Additionally, Jump Trading, a prominent market maker, dispatched nearly 236 BTC, equivalent to $5.9 million, to Binance in a singular transaction, as detailed by Arkham.

Another influential market maker, Wintermute, made deposits exceeding $3.3 million in ARB to Binance within the past 8 hours, a finding observed by blockchain investigator Lookonchain.

The activities of prominent institutional traders within the on-chain sphere are vigilantly tracked by smaller traders, given their perceived expertise and substantial impact on the market. While the transfer of tokens to exchanges may signal an intention to sell, it can also be part of market makers' strategy to redistribute funds between various exchanges, thereby enhancing liquidity.

These transfers occurred amidst a significant downturn in the crypto markets, driven by concerns surrounding the potential divestment of FTX, a major crypto exchange holding a digital asset portfolio valued at $3.4 billion. Historical data from Coinglass demonstrates that September has consistently been a turbulent month for digital assets, with Bitcoin registering negative returns every year since 2016.

Currently, BTC is precariously hovering just above the $25,000 threshold, having witnessed a 2.8% decline within the past 24 hours. Conversely, ETH recorded a 4.7% drop, attaining its lowest price since March. Among the major cryptocurrencies, ARB experienced the most significant decline, plummeting by 11% in a single day.

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