On Bitfinex, the “whale” withdrew a position for 435,000 ETH

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A massive decline in long positions on Ethereum happened on the Bitfinex exchange last night.

An unknown “whale” withdrew a position with a total volume of 435,000 ETH ($ 2 billion). This amount accounted for about 80% of all Bitfinex long positions on ETH at the time.

Despite such a large volume of the transaction, it did not affect the price of the cryptocurrency. At the time of publication, Ether is still trading near all-time highs at $ 4,780.

Bitfinex CTO Paolo Ardoino has confirmed that there has been a so-called position recall. In this case, the position is not closed by selling the cryptocurrency on the market, but is redeemed by the holder, who reimburses the lender for the amount owed in USDT from his own funds.

“The ‘withdraw position’ feature converts a margin trade into an exchange trade when you close the position, execute it yourself, and return the funds to the liquidity provider. Thus, these operations do not appear in the order book. For example: if 100 USD is available on your wallet and you are in a long position of 0.1 BTC / USD, then the available USD at the position opening price will be used for the withdrawal of funds. If the base price is 250 USD / BTC, then following the withdrawal and closing of the position, your account will have 75 USD and 0.1 BTC, ”explains Bitfinex.

Accordingly, the trader received a settlement in ETH, which he is free to dispose of at his own discretion. This approach can be used for further storage of the cryptocurrency or for the gradual extraction of profits with lower risks.

A similar situation happened in January this year. Then a position of 1.4 million ETH worth $ 1.8 billion at that time was withdrawn. Also, a major position was withdrawn in July. In both cases, after these events, ETH experienced a short-term correction in the rate, and then resumed its rise to new highs.

In addition, a transaction was recorded yesterday to transfer 20,000 ETH ($ 95 million) from the Ethereum Foundation wallet to the Kraken exchange. On May 17, in the course of the largest cryptocurrency market crash this year, the organization transferred 35,000 ETH to the exchange. The Ethereum Foundation was founded in 2014 to oversee the development of cryptocurrency and periodically sells ETH to fund its activities. At the same time, sales can be carried out on the over-the-counter market without being instantly reflected in the price of the cryptocurrency.

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