World Liberty Financial Inc. (WLFI), connected to a Trump-aligned organization, sold a large amount of Ethereum and incurred approximately a 55% loss.
The substantial financial loss and the timing of this action amid market instability are drawing attention.
Data from Arkham Intelligence indicates the WLFI wallet transferred 5471 ETH and received about $8 million at $1465 per ETH.
This sale contrasts with previous actions when the group bought 67498 ETH for $210 million at an average of $3259 each.
With current low Ethereum values, WLFI has an unrealized loss of around $125 million.
This recent sale itself resulted in a $7.9 million loss because of the lower selling price compared to the original purchase cost.
The reasons for this sale are currently uncertain.
Ethereum Price Decline and Critical $1200 Level
Possible reasons for this sale could include efforts to increase liquidity, adjust holdings, or a reaction to market volatility.
Regardless of the reason, this action has gained interest in the crypto community.
Beyond WLFI, a long-term Ethereum whale sold 10,000 ETH after holding it for over 900 days and made a $2.75 million profit.
This investor bought at $1295 per ETH in late 2022 for a total of $13 million.
They held onto their investment through Ethereum’s price increase to $4000 and then sold it for a smaller profit.
Uncertainty Surrounds Reasons for WLFI Sale and Broader Market Impact
Separately, one whale invested $14.5 million to protect a 220,000 ETH position.
Another investor lost 67570 ETH, valued at $106 million, following a collapse of the DeFi platform Sky.
Smaller investors are observing these large transactions to understand market direction.
It is unclear if these are individual events or signs of a larger market selloff.
Analyst Ali Martinez suggests $1200 as a critical price level for Ethereum.
Ethereum is currently around $1472, a decrease of over 6% in 24 hours.
This $1200 level might be important to prevent further price declines.
Despite expectations of a crypto surge related to Trump, Ethereum has decreased over 56% since January, prompting questions about its future.
Also Read: BNB Chain Becomes Testing Ground for Trump
