Jump Trading Withdraws 11,500 ETH ($29M) from Lido Finance, Potentially Signaling Sales
Jump Trading has moved a significant amount of ETH to an address previously used to deposit tokens on centralized exchanges, suggesting a potential sale.
A wallet allegedly associated with Jump Trading has withdrawn 11,500 ETH, worth $29 million, from the liquid staking service Lido Finance.
Anticipation of Sales
The Chicago-based company has frequently used this address to transfer tokens to crypto exchanges, a move generally associated with an intent to sell or liquidate assets on the market.
Jump Trading still holds 16,292 ETH, valued at $41 million, in its wallets, along with 21,394 WSTETH ($63 million) and 19,049 STETH being unlocked from Lido.
Impact on Ethereum and Market Context
Last Sunday, a wallet linked to Jump Trading had already moved $46 million worth of ETH to centralized exchanges, contributing to the massive Ethereum sell-off prompted by macroeconomic developments.
The price of ETH, which was at $2,900 on Sunday morning, dropped to nearly $2,100 on Monday, alongside a slump in many markets.
The recent crypto market crash has been exacerbated by sector-specific catalysts, such as the numerous movements from Jump Trading’s crypto wallet following an investigation by the CFTC. Additionally, the ongoing reimbursements of Mt.Gox creditors and outflows from Grayscale’s GBTC and ETHE have added to the selling pressure.
Despite this selling pressure, Ethereum has shown signs of recovery since Monday, bouncing back above $2,500. This rebound follows the recovery of the market-leading Bitcoin and signs of risk-on sentiment returning to traditional markets.
