Massive Crypto Crash as Whales Dump $200B Worth of Coins

Crypto markets experienced a significant decline, losing nearly $200 billion in market cap within 24 hours. Digital asset manager Grayscale sent a substantial amount of Bitcoin and altcoins to Coinbase, potentially for sale on the open market. Whale tracking service Whale Alert also observed large transfers to Coinbase, contributing to the correction in digital assets markets.

Crypto Markets Plummet by $200 Billion as Whales Unload Massive Amounts of Coins

The cryptocurrency market has experienced a sharp downturn in the past 24 hours, shedding close to $200 billion in value as major industry players initiate large-scale sell-offs.

According to Arkham Intelligence, a platform known for its cryptocurrency tracing capabilities, digital asset management firm Grayscale has transferred approximately $250 million worth of Bitcoin (BTC) to Coinbase, presumably for sale on the open market. Arkham's data reveals the transfer of BTC from Grayscale to Coinbase Prime or associated addresses occurred primarily in increments of $42.84 million.

Arkham's findings further indicate that Grayscale has also moved substantial amounts of altcoins, including Ethereum (ETH), Avalanche (AVAX), Polygon (MATIC), Lido (LDO), Uniswap (UNI), Aave, Chainlink (LINK), and others.

This flurry of asset movement from Grayscale coincides with the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). As a result, billions of dollars have flowed out of Grayscale's Bitcoin Trust (GBTC) as investors opt for ETFs with lower fees.

Whale tracking service Whale Alert has also identified several large-scale transfers to wallets belonging to Coinbase, including:

• 75,887,800 USDC (75,940,921 USD) from an unknown wallet to Coinbase Institutional
• 25,019 ETH (80,846,406 USD) from an unknown wallet to Coinbase Institutional
• 24,673 ETH (78,203,107 USD) from an unknown wallet to Coinbase Institutional
• 7,943 ETH (25,094,463 USD) from an unknown wallet to Coinbase

The simultaneous sell-off from Grayscale and other large whales has triggered a correction in the digital asset market. According to Coinglass, a crypto data aggregator, over $316.29 million in liquidations have occurred in the last 24 hours, primarily involving traders who attempted to leverage long positions on Bitcoin during the recent price dip.

At the time of writing, Bitcoin is trading at $60,069, a 18.2% decrease from its all-time high.

This market correction serves as a reminder of the volatility inherent in the cryptocurrency space. While large players can influence market dynamics, it is crucial for investors to exercise caution and conduct thorough research before making trading decisions.