Vitalik Buterin Moves 800 ETH to Multi-Signature Wallet, New Selloff Incoming?

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Vitalik Buterin Moves 800 ETH to Multi-Signature Wallet, New Selloff Incoming?

Vitalik Buterin, the co-founder of Ethereum (ETH), recently transferred 800 ETH, worth approximately $2.1 million, to a multi-signature wallet. This transaction has triggered speculation within the cryptocurrency community about whether a potential selloff is on the horizon.

According to Lookonchain on X, Buterin’s movement of the ETH has raised eyebrows, particularly in a market characterized by volatility in recent months. Of the 800 ETH transferred to the multi-sig wallet, 190 ETH has been swapped for 477,000 USDC.

vitalik.eth(@VitalikButerin) transferred 800 $ETH($2.01M) to a multisig wallet again 40 minutes ago.

The multisig wallet swapped 190 $ETH for 477K $USDC later.

On Aug 9, #Vitalik also transferred 3,000 $ETH($8.04M) to this multisig wallet.https://t.co/81Vf39bvbL pic.twitter.com/6IlwtcqvPg

— Lookonchain (@lookonchain) August 30, 2024

This has further solidified the thesis of a possible selloff from the Ether whale.

Vitalik Buterin’s past movements of ETH have often had market-wide implications. For instance, in May 2021, his donation of over $1 billion worth of different cryptocurrencies to an India Covid-19 Relief Fund led to a substantial decline in Ethereum price. Although the current transfer is smaller, the market’s sensitivity to actions by major figures like Buterin remains high.

Earlier in the month, Buterin transferred $8 million worth of ETH to a new wallet address, sparking speculation about the potential donation to charity. Historically, Buterin has moved substantial amounts of Ethereum to various wallet addresses. Most are donations supporting charitable organizations and other noble causes.

This made Lookonchain believe a recent transfer of 3,000 ETH worth approximately $8 million could “possibly be a donation.” According to reports, the digital asset was also sent to a multi-signature safe wallet, which Lookonchain suggests may belong to an unidentified charitable organization.

While it is unclear whether the funds are related to charity, as suggested by Lookonchain, the Ethereum co-founder has been consistent with his donations. Recall that Buterin sent $441 million worth of Akita Inu tokens (AKITA) to Gitcoin to support the platform’s mission to improve security within the crypto industry.

Per the on-chain indicators, the Ethereum co-founder recently transferred 400 ETH, worth $1.05 million, to crypto mixer Railgun. This is not the first time he has sent part of his ETH holdings to the crypto mixer. Railgun functions similarly to the popular Tornado Cash, helping to obscure the user’s identity and transactions.

As one of the top coins in the industry, Ethereum is sensitive to key events with some form of influence on its price. While investors can focus on the transfer from Vitalik Buterin, innovators within the Ethereum ecosystem provide a unique distraction or other focus areas.

Notably, Ethereum core developers are discussing possible upgrades in the future to ensure the network’s long-term competitiveness. This can impact its price in the long run as enhanced functionality may bring more adoption.

Since its inception, Ethereum’s price has jumped by over 770,000%. While the current price trend that has seen it fall by over 5% in the past week negates this trend, a rebound is imminent soon. New adoption catalysts like spot Ethereum ETF products might help Ethereum price regain its lost ATH of $4,891.70.next

Vitalik Buterin Moves 800 ETH to Multi-Signature Wallet, New Selloff Incoming?