The Ethereum Foundation has been actively selling off its holdings of Ethereum (ETH) over the past few months. Today, the foundation transferred its largest pile in 2024 amid Fed rate cut speculations and ETH options expiry.
Ethereum Foundation Largest ETH Transfer of 2024
The Ethereum Foundation has transferred 35,000 ETH, equivalent to approximately $94.07 million, to the Kraken exchange, marking its most substantial transaction of the year. This move follows a series of minor sales in recent months, where the foundation liquidated 2,516 Ether for $7.4 million in DAI.
BREAKING: The Ethereum Foundation deposited 35,000 $ETH ($93.8M) to #Kraken an hour ago!
This is their largest $ETH transfer out in 2024 so far. Previously, the Ethereum Foundation had only occasionally sold a few hundred $ETH on DEX, totaling 2,516 $ETH for 7.4M $DAI.… https://t.co/qnagGLL6Oe pic.twitter.com/PRKaSuf3hN
— Spot On Chain (@spotonchain) August 23, 2024
However, the foundation’s actions are scrutinised as it liquidates parts of its Ethereum holdings.
This recent transfer stands out due to its size and adds to the ongoing discussion regarding the Ethereum Foundation’s strategy and timing in managing its assets. The foundation has been known for its market timing, having made significant sales during market peaks, which has led to heightened interest from the crypto community in its recent activities.
Timing Amid Fed Rate Speculations
The timing of this Ethereum Foundation large transfer coincides with broader market movements influenced by speculations surrounding potential Federal Reserve rate cuts. Fed Chair Jerome Powell has recently hinted at possible policy adjustments during his Jackson Hole speech, leading to a surge in Bitcoin and ETH price.
In addition, the expiration of 140,000 Ether options with a notional value of $370 million today has further amplified market volatility.
The maximum pain point for these options is $2,625, and the heightened trading activity has led to a surge in open interest and trading volume, adding to the speculation around Ethereum’s near-term price movement.
Concurrent with the transfer, developers have hinted at a new upgrade dubbed “Fulu-Osaka.” According to a CoinGape report, EtherCast developers recently had their 140th All Core Developer Consensus Conference Call (ACDC), during which they discussed this upcoming upgrade. The Fulu-Osaka upgrade could play a role in the network’s future performance, potentially driving further interest in ETH
Historical Context and Strategic Management
The Ethereum Foundation has historically demonstrated a pattern of selling large amounts of Ether during market highs. This trend was highlighted when it sold 20,000 ETH in November 2021 at the peak of the previous bull market cycle.
Similarly, in 2017, co-founder Vitalik Buterin disclosed that the foundation had sold 70,000 ETH at the peak of that year’s market rally. These decisions have often been seen as strategic, leveraging market conditions to optimize the foundation’s financial position.
The recent transfer also follows a significant move in July, when the foundation moved 92,500 ETH, valued at $294.9 million, to a new wallet. This was the foundation’s first significant transfer in over six years, further fueling speculation about its long-term strategy. Despite this, ETH price has remained relatively stable after the transfer, trading at around $2,729, a 4% increase over the last 24 hours.
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