On-Chain Data Reveals 'Strange' Whale Activity As Bitcoin, Ethereum Tank 5%

A mysterious whale transferred 312 million USD Coin USDC/USD from Circle Internet Financial to exchanges in just the last eight hours.

What Happened: On-chain data analytics platform Lookonchain found a mysterious whale activity after Coinbase COIN said on Thursday that it would no longer accept or initiate payments with Silvergate Capital Corp. SI.

According to the on-chain data tracker, one mysterious whale started to withdraw USDC from Circle and initiated transfer to exchanges. The price of Ethereum ETH/USD increased by 2% during this period.

1/ With the crash of #Silvergate, the crypto market plummeted, and the price of $ETH dropped by 5%.

Before $ETH plummeted, the price had a slight increase.

The mysterious fund withdrew 312M $USDC from #Circle and transferred to exchanges during the 8 hours of the uptick. pic.twitter.com/KiH3xdgguU

— Lookonchain (@lookonchain) March 3, 2023

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Circle, the issuer of the USDC stablecoin, said on Friday that it is withdrawing from "certain services" involving Silvergate Capital. This move adds to the growing list of companies distancing themselves from the financially troubled U.S. bank. 

However, the whale again withdrew 10 million USDC from Circle to exchanges in the last two hours. Lookonchain noted that the behavior of this mysterious fund “is very strange.”

The price of ETH, and Bitcoin BTC/USD dropped by 5% during this time, leaving investors wondering if this whale has anything to do with the market decline.

Price Action:  At the time of writing, ETH was trading at $1,573, in the last 24 hours, according to Benzinga Pro. 

Read More: Bitcoin, Ethereum, Dogecoin Slide On Silvergate Panic: Analyst Says 'Time For A Squeeze' As Crypto Market Sees $240M Wipeout