Ethereum

Crash

Channels

United

Million

According to Bloomberg, a wallet linked to a major cryptocurrency heist two years ago swapped $39.75 million worth of the stablecoin DAI to scoop up 16,892 Ethereum (ETH) as the second-largest cryptocurrency plummeted by as much as 23% on Monday. 
<h2 id="crypto-hacker-exploits-ethereum-crash">Crypto Hacker Exploits Ethereum Crash</h2> 
Per the <a href="https://www.bloomberg.com/news/articles/2024-08-05/crypto-hacker-poured-nearly-40-million-into-ether-eth-as-token-sank" target="_blank" rel="noopener nofollow">report</a>, the hacker behind the 2022 attack on the cross-chain bridge protocol Nomad, which resulted in the theft of close to $200 million in crypto, appears to have spotted an opportunity to convert some of their illicit gains into discounted ETH prices.&nbsp; 
On-chain data showed that after purchasing ETH, the hacker then moved the tokens in batches of 100 to Tornado Cash, a privacy-focused exchange service that has come under scrutiny by US regulators for its alleged use to<a href="https://bitcoinist.com/dutch-court-sentences-tornado-cash-developer/" target="_blank" rel="noopener "> launder illicit funds </a>from crypto hacks. 
Despite this, significant selling pressure has prevented a significant bounce for the second-largest cryptocurrency on the market as large corporations have contributed to the ongoing decline.&nbsp; 
Market researcher DeFi Mochi pointed out that the ETH “obliteration” was caused by the capitulation of large investment funds. <a href="https://x.com/defi_mochi/status/1820303267328565512" target="_blank" rel="noopener nofollow">According </a>to the researcher, venture capital firm Paradigm unloaded 46,000 ETH tokens worth approximately $138 million at $3,000.&nbsp; 
Similarly, asset manager and <a href="https://bitcoinist.com/ethereum-decline-driven-by-capitulation/" target="_blank" rel="noopener ">ETF issuer </a>Grayscale reportedly dumped 372,000 ETH at a valuation of $1.1 billion through its newly approved Ethereum exchange-traded fund (ETF) in the US.&nbsp; 
Lastly, market maker Jump Trading has <a href="https://x.com/layerggofficial/status/1820268112635474158" target="_blank" rel="noopener nofollow">sold </a>over $500 million worth of Ethereum in the past few days after liquidating its funds amid rumors that it is exiting the crypto market maker business. 
<h2 id="etfs-see-430-million-in-net-outflows">ETFs See $430 Million In Net Outflows</h2> 
Amid these bearish developments, digital asset investment products have seen their first significant outflows in over a month, according to the latest <a href="https://etp.coinshares.com/knowledge/market-activity/fund-flows-05-08-24" target="_blank" rel="noopener nofollow">report </a>from CoinShares. The report indicates that these products, which include cryptocurrency exchange-traded funds and trusts, experienced total outflows of $528 million last week. 
The outflows are believed to be a reaction to growing fears of a recession in the United States, as well as persistent <a href="https://bitcoinist.com/ethereum-whales-eth-one-day/" target="_blank" rel="noopener ">geopolitical concerns</a> and broader liquidations across most asset classes. Trading volumes for these investment products also declined, representing a lower-than-average 25% of the total cryptocurrency market. 
Regionally, the majority of the outflows were concentrated in the United States, which saw $531 million in outflows. Germany and Hong Kong also experienced outflows of $12 million and $27 million, respectively.&nbsp; 
However, not all regions were impacted equally, as Canada and Switzerland saw inflows of $17 million and $28 million, respectively, likely taking advantage of the price drop. 
Ethereum experienced outflows totaling $146 million, bringing the<a href="https://bitcoinist.com/grayscale-eth-etf-outflows-ethereum-price-struggles/" target="_blank" rel="noopener "> net outflows</a> since the launch of Ethereum ETFs in the US to $430 million. This data, however, masks the positive inflows of $430 million last week from the newly launched US ETFs, which were offset by $603 million in outflows from the Grayscale Trust.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/4qRqHAn5/" alt="Ethereum" width="1814" height="858"> 
At the time of writing, Ethereum managed to regain the $2,450 level, recording drops of 28% in the past week alone and over 31% in the past two weeks despite this minor recovery. 
Featured image from DALL-E, chart from TradingView.com&nbsp;

Ethereum’s Unexpected Ally: Hacker Channels $40 Million Amid 25% Price Crash

Table of Contents

Bitcoinist

Other articles published on Aug 6, 2024

Elizabeth Warren, Other Lawmakers Urge CFTC To Ban Political Betting Contracts

Chainlink Falls Below Support: More Trouble Ahead for LINK Investors?

Donald Trump continues one-sided beef with China over crypto

Forget Market Chaos, as TRON Announces a Big Upgrade: What is The Future of This Top Meme Coin In...

Web3 Casinos Draw $78.7 Billion Worth of Crypto From Players in Four Years — Chainalysis Report

BlackRock Sees Low Demand for Other Cryptos Other Than Bitcoin and Ethereum

Join our free newsletter for daily crypto updates!