- The Ethereum Foundation transferred 35,000 ETH to Kraken, marking its largest transaction of 2024.
- The foundation’s timing aligns with market trends and Federal Reserve rate speculation, boosting ETH prices.
- The foundation’s strategic ETH sales during market peaks highlight its impact on the broader cryptocurrency market.
The Ethereum Foundation made headlines by transferring 35,000 ETH, valued at approximately $94 million, to the Kraken exchange. This transaction is the largest conducted by the foundation in 2024, following a series of smaller ETH sales earlier in the year. The foundation previously sold 2,516 ETH for $7.4 million in DAI, gradually reducing its Ether holdings.
Market Timing and Community Reactions
This significant transfer has sparked discussions within the cryptocurrency community, with some members calling for greater transparency from the foundation. The foundation has a history of timing the market effectively, selling large amounts of ETH during market peaks. However, the lack of detailed disclosures surrounding these transactions has raised concerns among investors.
Market Influence Amid Rate Speculations
The transfer comes at a time when market trends are influenced by speculations about potential Federal Reserve rate cuts. Recently, Federal Reserve Chair Jerome Powell hinted at possible policy changes during the Jackson Hole symposium. This caused a surge in cryptocurrency prices, with ETH seeing a 5% increase and trading at $2,741 on the Bitstamp exchange.
Another factor contributing to market uncertainty is the upcoming expiration of 140,000 ETH options, with a notional value of $370 million. The maximum pain point for these options is $2,625, which has led to increased trading activity and speculation about the future price of Ethereum. Developers have also hinted at an upcoming upgrade, “Fulu-Osaka,” which may further impact the network’s performance.
Foundation’s Strategic Management
Historically, the Ethereum Foundation has shown a pattern of selling large quantities of ETH during market highs. In 2021, the foundation sold 20,000 ETH when the crypto market reached its peak. This strategic management has drawn attention to the foundation’s activities, with market watchers closely monitoring its moves.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
