Galaxy Digital’s Ethereum Deposits Signal Potential Market Sell-Off

Galaxy Digital deposited 49,681 ETH into exchanges, signalling a possible sell-off that could lower ETH prices below $1,600, while maintaining a $538.6 million cryptocurrency portfolio. Galaxy Ventures raised $150 million for crypto startups and is moving into AI. Ethereum faces bearish sentiment amid ETF outflows and recent whale sell-offs.

Galaxy Digital has recently deposited a significant amount of Ethereum (49,681 ETH, approximately $80 million) into major cryptocurrency exchanges, including Binance and Coinbase. These movements, reported by Lookonchain, raised concerns regarding a potential sell-off that could push ETH prices below the $1,600 threshold. Despite these deposits, Galaxy Digital still retains a considerable cryptocurrency portfolio valued at $538.6 million, with Bitcoin being its largest holding.

Galaxy Ventures, a branch of Galaxy Digital, has engaged in fundraising activities, amassing $150 million to assist early-stage crypto startups, with plans to increase this amount by an additional $25-30 million. Meanwhile, the firm has taken steps to expand its operations into the AI sector by signing a deal for 200 megawatts with CoreWeave, an AI infrastructure provider, indicating a strategic pivot in their business model.

The potential for Ethereum’s price to decline hinges on broader market trends, especially given its recent struggles with the psychological barrier of $2,000. Following a surge in whale activity, the price rose from $1,550 to approximately $1,700. However, subsequent sell-offs have brought it back below $1,600. Moreover, US-based spot ETH exchange-traded funds have reported consistent outflows, leading to bearish sentiment in the market.

It is crucial for investors to remain vigilant, as any further sell-offs by large holders could push Ethereum prices down to or below the pivotal support level of $1,550. The current dynamics indicate a turbulent outlook for Ethereum’s price in the near future.

While this article aims to provide detailed insights, it does not constitute financial advice. Market conditions can change swiftly, and individuals should consult professionals before making investment decisions based on the information presented.