Dormant Ethereum Whale Wallet Moves $400M in ETH to Bitfinex Ahead of 20% Drop

A Dormant Ethereum Whale resurfaced after six years, transferring a staggering 135,548 ETH, valued at just under $400 million to Bitfinex hours before Ethereum (ETH) plunged by 20%.

The sudden activation of these long-inactive wallets has raised speculation about whether the move was a calculated strategy or sheer coincidence.

According to on-chain data from Spot On Chain, the two wallets, inactive since January 2019, moved funds within hours of each other. While ETH holders were caught off guard by the market downturn, these whales may have secured an astronomical 1,817% profit, making the perfect exit before the collapse.

Strategic Move or Coincidental Timing?

Blockchain analysis shows that the first whale, wallet 0xfdfe…06def3, transferred 77,736 ETH worth approximately $193 million to Bitfinex 11 hours before the market meltdown. The second whale, wallet 0x693b…98dee8, sent 57,813 ETH, valued at $144.3 million, to the same exchange an hour later.

Following the transfers, both wallets now hold insignificant ETH balances, leading analysts to speculate whether the whales preempted the crash or simply had exceptional timing.

“Whenever we see large whale movements, especially from Dormant Ethereum Whale, it’s a red flag,” said James Butterfill, Head of Research at CoinShares. “While we can’t confirm their intentions, it’s evident that this kind of activity can shake market sentiment.”

Adding fuel to the fire, data from CoinGlass reported over $2 billion in liquidations, with $1.58 billion in long positions wiped out in 24 hours. This suggests that the ETH whales may have capitalized on a vulnerable market just before a widespread sell-off.

Trump’s Trade War Escalates

While the Dormant Ethereum Whale activity raised alarms, broader macroeconomic factors may have played a pivotal role in Ethereum’s sharp decline. Market watchers point to U.S. President Donald Trump’s aggressive tariff hikes on Canadian, Mexican, and Chinese imports as a major catalyst.

On Saturday, Trump announced:

A 25% tariff increase on goods from Canada and Mexico

A 10% tariff hike on Chinese imports

This unexpected move spooked global markets, triggering retaliatory measures from the affected countries. Jinze, a former Binance China researcher, warned that these tariffs could be the biggest macroeconomic threat in 2025, affecting both traditional markets and crypto assets.

“This is not just about trade wars; it’s about global economic uncertainty,” Jinze stated. “Crypto is still perceived as a high-risk asset, and when investors panic, they liquidate volatile holdings first—Ethereum included.”

Ethereum’s Freefall: Numbers Paint a Grim Picture

At the time of writing, Ethereum is trading at $2,250, reflecting a 19.9% loss in the last 24 hours. The weekly losses now stand at 22.4%, significantly underperforming the overall crypto market, which is down 10.6%.

Key ETH Performance Metrics:
24-hour loss: -19.9%
7-day decline: -22.4%
30-day drop: -30%
12-month growth: +8.8%

Given the steep decline, some analysts believe Ethereum could experience further downside pressure if macroeconomic conditions worsen.

With the Dormant Ethereum Whale event fresh in investors’ minds, market sentiment remains fragile. The timing of the whale transfers and the Trump tariff turmoil suggests a perfect storm of market forces colliding at once.

“Smart money never moves blindly,” said Alex Thorn, Head of Research at Galaxy Digital. “These whales either had inside knowledge or impeccable timing, but one thing is clear—their moves significantly impacted Ethereum’s price action.”

The Dormant Ethereum Whale Legacy

The Dormant Ethereum Whale may have exited the stage, but their actions left an undeniable mark on the market. The strategic or coincidental timing of their massive $400M transfer, combined with global trade tensions, created a perfect storm that sent Ethereum tumbling.

With ETH struggling to regain momentum, traders are left questioning: Did the whale foresee the crash, or was it just sheer luck? Regardless, this incident highlights the massive influence of long-dormant whales on the cryptocurrency ecosystem.

As Ethereum navigates through volatile waters, the market will be watching closely for more whale awakenings—and their potential to shape crypto’s next big move. Get more from The Bit Gazette