Bitcoin And Ethereum Dumping Spree

To weather the current market dangers, Canadian investment company Cypherpunk Holdings (HODL) sold all of its bitcoin and ether holdings.

The corporation sold 214.7203 bitcoins (BTC) for about C$6.09 million ($4.7 million) and 205.8209 ether (ETH), the native unit of Ethereum, for C$293,000 ($227,000). According to a Tuesday announcement, it earned C$6.38 million ($5 million) in total from the sales.

The company claimed to have C$18.16 million ($14.1 million) in cash and stablecoins on hand. It also indicated that it had structured goods with a 30-day redemption notice for which it had been allotted roughly C$1.93 million ($1.5 million).

According to Cypherpunk President and CEO Jeff Gao, the decision to sell off all of the company’s bitcoin and ether assets followed an increase in market volatility that made investing in asset tokens riskier.

In the previous year, the value of both bitcoin and ether has decreased by more than half, falling earlier this month to 52-week lows. The price of the company’s shares on the Canadian stock exchange had fallen by 50% this year.

In perspective, Gao said,

” We believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion. On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases”

Cypherpunk will continue to have a “long-term bullish stance” on cryptocurrencies, according to Gao, and will seek to take advantage of any potential investment opportunities “as and when they present” in the market.

Bitcoin and other cryptocurrency dumping leading to a crypto winter?

As a result of investors abandoning riskier assets in response to decades-high inflation, cryptocurrency markets have entered a particularly frigid crypto winter, which has caused prices to recoil.

For instance, an investigation by Arcane Research indicated that BTC  mining firms like Riot Blockchain (RIOT) and Bitfarms (BITF) jointly sold out more than 100% of their entire output in May when the value of BTC declined by 46%.

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Furthermore, not very long ago, Tether CTO, Paolo Ardoino tweeted about conventional hedge funds attempting to dump USDT. Today, we witnessed a confirmed dump of the world’s largest and second-largest cryptocurrency by one of the biggest investment firms. Is this a trend that seems to be setting the tone of the market? Only time can tell.


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