Arthur Hayes Sells All His Holdings Of This Altcoin, How Did The Price React?
09 April 2024 - 12:00AM
NEWSBTC
Arthur Hayes, the founder of the crypto exchange BitMEX, recently
made a move on an altcoin he had held since 2022. This move saw the
transfer of over 230,000 GMX tokens to Wintermute Trading,
seemingly making a profit of $3.2 million. Related Reading: XRP
Price Drops After Massive Whale Dump, Casting Doubt On $1 Target In
April Altcoin Dropped By Its Largest Personal Holder Blockchain
research platform Lookonchain revealed that Arthur Hayes seemingly
sold his GMX holdings yesterday. Hayes was the largest holder of
GMX, the native token of decentralized perpetual exchange GMX.
Throughout 2022, the BitMEX founder spent a total of 3,383 ETH,
worth $5.17 million, to buy 200,581 GMX tokens. In 2023, Hayes
spent another 60 ETH to buy 2,328 GMX, around $105,000. From July
to December 2023, Hayes withdrew 215,428 GMX tokens from
centralized exchanges (CEX). By the end of 2023, he had bought
218,337 GMX for $6.5 million from CEX and decentralized exchange
(DEX) Uniswap. As of April 7, 2024, Hayes had GMX holdings worth
$9.7 million, per Lookonchain data. The post revealed that Hayes
had unstaked all 237,672 tokens and transferred them to an address
linked to crypto algorithmic trading firm Wintermute Trading. The
transaction sparked rumors of a possible token sale by the former
CEO of BitMEX. According to the report, the average cost of buying
through Haye’s accumulation phase is around $29.74. After
selling, Hayes’s profits would total over $3.2 million. GMX
investors reacted to the news, suggesting that “nothing changed”
and the altcoin was “in that buy zone again.” Did Arthur Hayes
Accept Capitulation? Crypto analyst and trader JJcycles suggested
that the transaction looked like “Hayes capitulation.” Later, the
trader speculated why the GMX price didn’t “tank hard” after one of
its largest personal holders sold his tokens. To the analyst, the
incident looked “like the price of ETH during the FTX debacle.”
Based on his perception, the trader decided to buy more GMX tokens.
One of the largest holders of GMX send his bags to a market maker.
Speculation goes that he is selling which is the most logical
conclusion to make. My question, why is price not tanking hard?
Feels a bit like the price of ETH during the FTX debacle.I'm buying
more.$GMX pic.twitter.com/jZi91vIghT — JJcycles (@JJcycles) April
8, 2024 In a later post, the analyst clarified what he meant with
his previous statement. According to him, GMX’s capitulation looks
like ETH’s capitulation in 2023. As reported by NewsBTC, the number
of Ethereum traders selling at a loss increased around August 2023.
ETH’s price bounced back from the capitulation and has continued an
upward trajectory ever since. Per the analyst charts, GMX appears
to be showing an ascending triangle pattern at writing time, like
the one made by ETH during its capitulation. To the trader, this
suggests GMX could begin an upward trajectory like ETH. GMX Price
Reaction The GMX token displays red numbers in most timeframes, as
it’s currently 55.5% lower than its all-time high (ATH) of $91.07.
The token registers a 7.9%, 28.9%, and 48.9% price drop on the
weekly, monthly, and yearly timeframes. After the news of Hayes’
transaction broke, the price went from hovering between the
$40.8-$40.7 price range to $37.1, plunging 9% in just an hour.
Nonetheless, the altcoin quickly started to recover from the
initial dip. At the time of writing, GMX is trading at
$40.47, a 1% drop from 24 hours ago. Notably, the token’s market
activity skyrocketed 467.6% in the last day, with a daily trading
volume of $54.77 million. Related Reading: Sleeping Giant Awakens!
Ethereum Whale With Over 12,000 ETH Creates Noise GMX performance
in the 3-day chart. Source: GMXUSDT on Tradingview Featured
Image from Unsplash.com, Chart from TradingView.com
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