Market Maker Unleashes Millions of Altcoins, Triggering Price Drop: Is a Sell-off Underway?

• Wintermute, a cryptocurrency market maker and trading firm, transferred $5 million worth of dYdX (DYDX) to exchanges, resulting in a price drop of up to 10%.
• On-chain analytics platform Lookonchain reported that Wintermute transferred 2.6 million DYDX tokens worth $5.08 million to various exchanges.
• Wintermute’s transfers caused the DYDX price to decrease by around 10%, supporting Lookonchain’s theory of selling pressure.

Wintermute, a cryptocurrency market maker and trading firm, recently transferred $5 million worth of dYdX (DYDX) tokens to exchanges, resulting in a significant price drop. On-chain analytics platform Lookonchain reported that Wintermute transferred 2.6 million DYDX tokens worth $5.08 million to various exchanges.

Since then, Wintermute has conducted additional transfers, totaling 63,000 DYDX tokens. Lookonchain initially reported the transfers approximately 22 hours ago, suggesting that Wintermute may be selling its holdings. The DYDX price has since dropped by nearly 10%, further supporting Lookonchain’s theory of selling pressure.

Wintermute’s Large Transfers

Wintermute initially transferred 650,000 DYDX tokens, but quickly increased the amount to 2.66 million DYDX tokens worth $5.3 million. In total, Wintermute now holds approximately 3.1 million DYDX tokens, with around 90% of its assets transferred to exchanges. As of now, Wintermute’s wallet still contains approximately 461,000 DYDX tokens worth $908,000.

DYDX Price Drop

Following the transfers, the price of DYDX experienced a significant drop of nearly 10%, falling from $2.14 to $1.94. However, the token has since recovered by 3% and is currently trading at around $1.98. CMC provides data on DYDX’s price movements.