- A recent whale alert triggered a 2.34% decline in SHIB’s price.
- SHIB’s recent selloff was out of unverified rumors.
- Wintermute was behind the SHIB transaction, and it was not for a selloff
A cryptocurrency platform has researched the recent Shiba Inu (SHIB) transaction spotted by Whale Alert that triggered panic among the memecoin’s holders, leading to a 2.34% decline in SHIB’s price within 24 hours.
The crypto platform discovered that the transaction actually involved a change of custody, not a sell-off suspected by many SHIB users, which triggered a panic sell.
Wintermute Identified as Mover of 2.89T SHIB, $43.5M ETH to Coinbase Prime
After researching the transaction, the crypto firm identified Wintermute, a leading algorithmic trading firm, as the originator of these large transfers. Wintermute moved funds, including SHIB and ETH, from BitGo, a digital assets custody and liquidity firm, to Coinbase Prime, the institutional investor arm of the leading US exchange.
According to the crypto platform’s report, Wintermute carried out several transactions, including a 2.89 trillion SHIB transfer worth $36.6 million. The algorithmic trading firm also sent 16,650 ETH worth $43.5 million from BitGo to Coinbase.
Not a Sell-Off: Understanding Market Maker Fund Movements
The flow of funds clearly indicates that Wintermute pulled funds from the custody platform BitGo and shifted them to Coinbase Prime. It is worth noting that market makers carry out such transactions for several reasons, not necessarily linked to selling off.
For instance, market makers could transfer significant funds from secure custody to exchanges when they want to execute trades. That suggests that Wintermute’s latest transfers were to move SHIB and ETH to Coinbase Prime for active trading and market-making. Hence, the spotted transaction was not from an unidentified source trying to sell.
Related: Is Shiba Inu Set for a Trend Reversal? Key Bullish Patterns Emerge for SHIB
SHIB Transactions Common; Ecosystem Activity Persists Despite Bearish Pressure
In the broader picture, massive transactions involving SHIB tokens are common in the cryptocurrency market.
Typically, such movements, once understood, do not significantly impact the memecoin’s price in the long term. They do, however, reveal the ongoing user activity in the Shiba Inu ecosystem amid bearish pressure. SHIB remains under bearish pressure and has not regained its historical bullish momentum.
Related: SHIB to $0.00024 or $0.0058: Bullish Dream or Future Reality?
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