Genesis creditor sells $31.43M in ETH in three days after $358M repayment

The biggest recipient from the Genesis Trading bankruptcy has recently initiated a major sell-off of Ethereum, according to Arkham Intelligence data. The creditor has sold 12,100 Ethereum (ETH), valued at $31.43 million, within three days.

The move follows their receipt of repayment from the now-bankrupt Genesis Trading, which began distributing its assets in August as part of the liquidation process.

The sale of such a large amount of ETH by the creditor could potentially influence the broader market, particularly in light of the ongoing volatility in Ethereum’s price movements.

The creditor, linked to the wallet address 0x999…46E, received 114,502 ETH, worth $358.19 million at the time, as part of the Genesis liquidation repayments on August 2. This made the creditor the largest recipient of compensation from Genesis.

The creditor initiated sales of their Ethereum holdings on September 23, transferring ETH to FalconX, a prominent institutional cryptocurrency brokerage firm.

Over the next few days, the creditor liquidated a total of 12,100 ETH, with the largest transaction of 7,099 ETH, valued at $18.56 million, occurring on September 25.

These transactions have occurred amid a backdrop of uncertain market conditions, possibly heightening selling pressure across the broader cryptocurrency market.

Ethereum trading range tightens

Ethereum has faced sideways price action over the last five days, fluctuating between $2,529 and $2,703.

Source: CoinMarketCap

This period follows a brief price spike in mid-September, but with the recent sale of a significant portion of ETH by the Genesis creditor, the market could be vulnerable to further selling pressure.

Analysts are watching closely to see how these developments might affect Ethereum’s price trajectory in the short term.

Genesis Trading, a subsidiary of Digital Currency Group, filed for Chapter 11 bankruptcy earlier this year following a series of financial setbacks.

As part of its liquidation, Genesis began repaying creditors in August 2023, distributing approximately $4 billion in crypto assets.

The creditor in question received the largest portion of these repayments, but their recent sales suggest they may be preparing for further market turbulence or reallocating their assets elsewhere.

While the reasons behind the creditor’s swift liquidation of a portion of their Ethereum holdings remain unclear, the size of these transactions could create ripple effects in the market.

Large-scale sales of ETH can trigger a cascading effect, influencing the behavior of other traders and potentially leading to a dip in Ethereum prices.

Market participants will be closely monitored for any additional sales or signals from other major Genesis creditors.

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