A massive sell-off by Ethereum whales has sent shockwaves through the crypto market, with analysts fearing a potential bearish trend in ETH price.
While whale token dumps are usually indicative of an imminent downtrend, the community remains nervous. Is this 63,000 ETH sell-off a sign of a larger market trend or just a temporary correction? Let’s dive into the details and explore what this means for the future of Ethereum.
Ethereum Whales Take Profit with Massive ETH Sell-off: Know Details
In a recent revelation, crypto analyst Ali Martinez unveiled an enormous whale activity involving Ethereum (ETH). The analyst uncovered a large-scale ETH sell-off of about 63,000 tokens over a period of 48 hours.
The whale activity reflects a broader market trend where large holders capitalize on the recent price surges. Many investors are seizing this opportunity to lock in profits as the crypto market is recovering from its bearish phase.
As reported by EmberCN, an Ethereum whale, who had sold their 15,000 ETH on April 22, liquidated the remaining holding of 35,754 ETH at $1,793 on April 23. These increasing whale moves indicate an impending ETH price crash.
Is ETH Price Falling to $1,300?
Typically, market trends suggest that increased pumps (buying activity) can drive prices up, while large dumps (sell-offs) can lead to price declines. Here, as Ethereum whales are capitalizing on the recent ETH price uptick, it is expected to have a negative impact on the altcoin’s value.
In addition, technical analysis further strengthens this bearish outlook. As pointed out by market expert Robert Mercer, the ETH price broke the bearish pennant pattern, suggesting a potential continuation of the downtrend.
Source: X, EmberCN
Notably, this pattern typically forms after a sharp decline, followed by a brief consolidation phase. With the price now breaking below the pennant’s support, it could trigger further selling pressure, potentially driving the price down to $1300 or lower, depending on market conditions.
At press time, Ethereum is trading at $1,803, up 1.66%. Over the past seven days, ETH experienced a massive increase of 12% despite a 10% decline in a month. As CoinGape recently reported, a 4% drop in Ethereum’s price to $1,731 would trigger the liquidation of approximately $973 million in long positions.
The crypto market took a sharp hit on March 4, losing $800 million in value as prices dropped. After briefly crossing $3 trillion, the total market cap fell 9% to $2.77 trillion, with trading volume also dipping 14% to $177 billion. Bitcoin, Ethereum, and XRP initially jumped after Trump announced plans for a U.S. crypto reserve, but the excitement faded quickly. New tariffs on Mexico and Canada added pressure, causing a market-wide sell-off and reminding investors how sensitive crypto remains to economic shifts.
Trump’s Crypto Strategic Reserve plan briefly lifted Bitcoin 10%, Ethereum 13%, and XRP 34%.
But traders rushed to sell, flooding exchanges with 6,739 Bitcoin per hour and 300,000 Ethereum inflows.
Interestingly, while the whole crypto is on bear more, large holders—commonly referred to as whales—began shifting vast amounts of crypto to exchanges. This came right after Trump announced his plans to include other crypto assets in the crypto reserve plan. According to CryptoQuant, hourly inflows of XRP soared to 193 million tokens, primarily from wallets executing transactions of over 1 million XRP each. Bitcoin inflows skyrocketed from a typical 500-1,000 BTC per hour to an astonishing 6,739 BTC. Meanwhile, Ethereum saw a similar pattern, with nearly 300,000 ETH sent to exchanges within a single hour.
Trump-n-Dump.
– After Trump’s Strategic Reserve message, crypto prices have given back all of their previous gains as traders rushed into exchanges to sell.
– The subsequent drop in crypto prices indicates that real spot demand continues in contraction territory.
When institutional or large investors move assets to exchanges, it typically signals selling pressure. Most long-term investors keep their holdings in cold storage, meaning large transfers to exchanges often precede a sell-off. This massive inflow coincided with price swings across the market, indicating that traders likely took advantage of the Trump-induced rally to offload assets.
Bitcoin Demand in Decline—What’s Next?
CryptoQuant analysts noted that despite the short-lived price spike, real spot demand remains weak. Bitcoin’s apparent demand, a key metric tracking the balance between newly mined coins and existing supply, has been in decline since late 2024. This trend has pushed demand into contraction for the first time since September 2024, raising concerns about Bitcoin’s ability to sustain rallies.
Retail accumulation has also slowed since November, further reducing buying pressure. Without fresh capital entering the market, sustaining upward momentum in crypto prices will be difficult.
Can Trump’s Pro-Crypto Stance Revive the Market?
Trump’s support for crypto has created buzz about new rules and big investors jumping in, but the market’s reaction shows traders are still unsure. If more people don’t start buying, prices could have a hard time staying up, even with all the excitement around the U.S. crypto reserve plan. Now, investors are waiting to see if this move will bring long-term growth or just more price swings.
Controversy has trailed the announcement of a Crypto Strategic Reserve with critics taking swipes at crypto czar David Sacks over allegations of unjust enrichment. Gemini cofounder Cameron Winklevoss has waded in to defend Sacks, noting that the crypto czar is losing a fortune in gains by preventing a conflict of interest.
Gemini Founder Says Sacks Could Lose Up To $1 Billion In Crypto Gains
Amid swirling speculations of unjust enrichment, Sacks confirmed the sale of all his cryptocurrency holdings to avoid a conflict of interest. Gemini Founder Cameron Winklevoss remarked that Sacks’ decision to sell off all cryptocurrencies would cost him gains running into a billion dollars.
“David Sacks is going to easily lose out on $1 billion in crypto gains over the next 4 years,” said Winklevoss. “He sold all of his crypto holdings (including $85 million of his personal holdings) prior to becoming AI and crypto czar.”
Sacks has previously confirmed the sale of his digital asset holdings while denying Multicoin exposure after divesting his stake. According to Sacks, he cumulatively sold $200 million worth of cryptocurrencies while disposing of $85 million worth of personal assets. He confirmed that he liquidated his holdings in crypto funds, including Bitwise and Blockchain Capital, before assuming office.
Cameron says Sacks is at the helm of a policy shift for cryptocurrencies in the US but will not reap any benefits from the windfall of changes.
“He is doing tremendous work and will not be sharing in any of the economic upsides to avoid even the slightest appearance of a conflict,” said the Gemini cofounder.
Sacks Leads The Charge For New Crypto Policy Without Pecuniary Benefits
David Sacks has hit the ground running since his appointment as crypto and AI czar, playing a key role in setting up the White House Crypto Summit. His efforts led to the establishment of a Strategic Bitcoin Reserve and the US Digital Asset Stockpile.
Sacks disclosed that the US has lost over $17 billion from the previous sale of confiscated Bitcoins. The concerted efforts of Sacks are expected to trigger new institutional interest in the ecosystem, sending prices to new all-time highs by the end of Trump’s first tenure.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee as we discuss the growing influence of stablecoin issuers in the US Treasury market. With growing institutional adoption and regulatory legitimization of US dollar-pegged stablecoins, experts warn of artificial inflation of demand for the dollar.
Crypto News of the Day: Using Government Debt Instruments To Back Digital Dollars is Risky, Keiser Warns
The influence of stablecoin issuers in the US is growing, so much that Tether, which already issues the USDT stablecoin, plans to launch a US-only stablecoin by 2025. Tether aims to position stablecoins as strategic financial tools under the Trump administration.
Stablecoin supply by issuer in billions of US dollars. Source: Bain & Company
This chart shows Tether’s dominance in the stablecoin market, with overall supply going from $2 billion to more than $200 billion in recent years.
Meanwhile, the US Treasury projects stablecoins could reach a $2 trillion market by 2028, which could attract more players.
Nevertheless, as stablecoin influence in the Treasury market grows, the House Financial Services Committee is concerned.
Perhaps, however, the greater concern is stablecoin issuers’ using Treasury yields to buy Bitcoin. According to experts, this could undermine US government reserves.
A recent US Crypto News publication indicated reports of stablecoin issuers using Treasury yields to buy Bitcoin. Some say this could undermine initiatives like the proposed US Strategic Bitcoin Reserve, which aims to bolster national holdings of the pioneer crypto.
Growing Influence of Stablecoin Issuers in US Treasuries Market is Concerning, Max Keiser Says
Among them is Bitcoin pioneer Max Keiser, who voiced concerns over the growing influence of stablecoin issuers in the US Treasury market. Keiser warns that their use of government debt instruments to back digital dollars may have broader implications for the global financial system.
As of Q1 2025, Tether reported holding nearly $120 billion in short-term US Treasury securities and reverse repos. This makes it one of the largest non-sovereign holders of American government debt.
Meanwhile, Circle, issuer of USDC, disclosed more than $22 billion in Treasury bills in a February 2025 attestation.
These holdings collateralize dollar-pegged stablecoins, helping issuers maintain liquidity and trust. The issuers benefit from the interest income generated by the bonds.
While this practice is common and legal, Keiser contends it contributes to deeper systemic issues tied to fiat currency dynamics.
“This is exactly why the stablecoin issuers are buying Bitcoin, this is called a speculative attack on the US dollar. Feeding the debt spiral with fiat stablecoins, buying treasury bills, and then investing the interest into Bitcoin, allowing the stablecoin issuers to buy billions in Bitcoin for free,” Keiser told BeInCrypto.
Stablecoin issuers purchase US debt on secondary markets and earn interest, which they may or may not deploy into digital assets like Bitcoin. Keiser is critical of the broader financial architecture underpinning stablecoins.
“Issuing new stablecoins backed by US T-bills printed out of thin air is not a monetary system, but a financial hologram,” he said.
US Treasury bills are debt instruments issued by the federal government and sold to investors, including private companies like Tether and Circle, through regulated markets. These stablecoin issuers tokenize existing fiat currency held in reserve.
Keiser elaborated on what he sees as the long-term consequences of this model.
“It’s a speculative attack by private banks. It is financial repression, pushing rates down as ‘malinvestments’ increase. It is rinse and repeat,” he explained.
His critique also extends to the broader outlook for the US dollar, which, according to the Bitcoin pioneer, “is a quick, deadly fix; a USD hospice. Cue the final death throes of the US dollar.”
BeInCrypto has contacted Circle and Tether for comment and will update this article if they respond.
Max Keiser Proposes AI To Invent Novel Security Structures
Keiser also highlighted what he views as an emerging trend. He said high-profile investors and technologists use artificial intelligence (AI) and novel corporate strategies to increase Bitcoin exposure.
The Bitcoin maxi referenced Strategy Executive Chair Michael Saylor and investor-turned-politician Vivek Ramaswamy.
“Financial engineers like Michael Saylor and Vivek Ramaswamy are using AI to invent novel security structures to maximize the Bitcoin Treasury model. Vivek Ramaswamy plans to take his company, Strive Asset Management, public by merging with Asset Entities and starting to accumulate Bitcoin using the model that Saylor’s Strategy has already successfully adopted — using proceeds from stock and debt issuance,” Keiser remarked.
Though no confirmed public filings detailing Ramaswamy’s use of AI in this context, Keiser sees these developments as significant.
“The results are redefining finance globally and adding significantly to the Bitcoin demand. OG’s like myself, who have watched Bitcoin outperform everything for 15 years, are seeing, for the first time, investment strategies that are outperforming Bitcoin, and the implications are profound,” he said
Keiser believes such strategies could push Bitcoin’s market value even higher. He also implied that the extraordinary compounding rates of the past could be extended. This sentiment comes as Bitcoin captures more of the total addressable market and scales even higher price points.
The views expressed are those of Max Keiser and do not necessarily reflect the opinions of BeInCrypto.
Chart of the Day
International holdings of US Treasuries in billions of dollars. Source: Bain & Company
This chart shows that stablecoins have become a large holder in US treasuries.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
