What are the whales doing during market panic: accumulating 20,000 ETH worth $59.4 million, with total profits approaching $100 million

A major whale once again demonstrates precise timing in the market. During the 24-hour correction with a 7.29% drop in ETH, this address accumulated 20,000 ETH through Wintermute and FalconX in the past 8 hours, worth $59.4 million, with an average acquisition price of approximately $2,970. Interestingly, this whale just took profits at a higher point the day before, netting $1.51 million. Between these entries and exits, it has accumulated a total profit of $98.18 million through ETH swing trading.

The Whale’s Trading Rhythm

Precise Timing

The operational logic of this address is very clear. It sold at a relatively high point the day before for profit, then immediately re-entered during a significant market correction two days later. Based on the average purchase price of $2,970, it is very close to ETH’s current price of $2,958.53, indicating the whale’s judgment of the market bottom is quite accurate.

Completing the purchase of 20,000 ETH within 8 hours, with a single transaction volume of $59.4 million, is not typical retail behavior. Such a scale of trading requires professional execution capabilities and sufficient liquidity support. The involvement of Wintermute and FalconX indicates this is an institutional-level operation.

Effectiveness of Swing Trading

The total profit of $98.18 million speaks volumes. This address is evidently not engaged in long-term holding but is profiting through repeated swing trades. In the volatile crypto market, being able to consistently make nearly $100 million in profit demonstrates the viability of its trading strategy.

The $1.51 million profit from the day before, combined with the expected gains from this recent re-entry, reflects the whale’s ability to identify market turning points.

The Importance of Market Context

This re-entry is not an isolated event. According to relevant information, on January 20, the market experienced an $850 million long liquidation triggered by tariff news, causing risk assets to come under pressure. It was amid this market panic that institutions like Trend Research also borrowed funds from Aave to bottom-fish ETH.

The whale’s re-entry contrasts interestingly with the actions of institutions. While retail investors panic-sell, institutions and professional traders are taking contrarian positions. This divergence itself is a signal of a market bottom.

ETH has fallen 7.29% in the past 24 hours and 10.90% over the past week, but the current price of $2,958.53 remains within a relatively reasonable range. Based on the average purchase price, the whale’s outlook for the market remains supported.

Market Insights

Such whale re-entry behaviors generally carry two implications. First, they reflect professional traders’ judgment of the market bottom. Second, this scale of re-entry can itself impact market liquidity and potentially serve as a support level.

However, it’s important to note that the success of whales is not necessarily replicable. Their success relies on professional analysis, ample capital reserves, and execution efficiency. Retail traders often face issues like mistimed entries and high transaction costs.

Summary

This swing whale’s recent activity highlights several key points. First, opportunities exist amid panic, but capturing them requires professionalism and sufficient capital. Second, the nearly $100 million in accumulated profits shows that swing trading is feasible in the current market, but it depends on ongoing volatility and precise timing. Third, the synchronized bottom-fishing actions of whales and institutions reflect a consensus among market participants on current prices.

From a broader perspective, such re-entry behaviors occur during periods of deleveraging and risk asset pressure. If subsequent ETF capital flows remain positive and Bitcoin holds above $90,000, this re-entry could prove to be a precise bottom operation. Conversely, if the market continues to weaken, this whale’s re-entry will face tests. Ultimately, it depends on macroeconomic conditions and subsequent capital movements.