Ethereum News Today: Hyperliquid Whales Withdraw Over $22M USDC Amid Market Downturn

Large-scale USDC withdrawals from Hyperliquid have exceeded $22 million in the last 24 hours, intensifying downward pressure on the crypto market [1]. The outflow, driven primarily by high-net-worth investors—commonly referred to as “whales”—has raised concerns about liquidity and volatility. Multiple whale addresses executed substantial withdrawals, with one withdrawing 3.47 million USDC and another 7.277 million USDC [1]. These movements contrast with a 20.53 million USDC deposit by a separate address, underscoring the complex nature of capital reallocation.

Whale activity has also extended to ETH and BTC positions, with ETH short positions reduced by over $2 million. One whale cut its short exposure by $1.27 million, despite suffering a $20.19 million loss [2]. BTC short positions were reduced by $1.01 million, though losses for BTC totaled approximately $7.48 million [2]. These adjustments suggest a broader recalibration of risk as whales hedge against further volatility.

The market impact is evident. Meme tokens such as PEPE and BONK have experienced sharp declines, with PEPE dropping nearly 5% and BONK falling over 12% [2]. The behavior reflects a cautious yet calculated approach to liquidity and risk management, as whales navigate a volatile environment.

On-chain data is increasingly used to track these movements and anticipate market trends. The large-scale outflows have contributed to heightened liquidity stress and amplified downward price movements in both spot and derivatives markets [2]. Analysts are closely monitoring the situation, noting that similar whale-driven outflows in the past have led to rapid declines in total value locked and price instability.

The continued withdrawal of capital from Hyperliquid is being seen as a potential early indicator of broader market sentiment. If no stabilizing measures are introduced, the trend could lead to sustained volatility and further liquidity challenges. Market participants are advised to remain vigilant as whale activity continues to shape the short-term dynamics of the crypto market.

Source:

[1] https://www.ainvest.com/news/hyperliquid-whale-move-over-34-7m-usdc-withdrawn-in-a-single-transaction-one-address-reversed-deposited-20-53m-usdc/

[2] https://www.ainvest.com/news/ethereum-news-today-crypto-whales-shift-strategy-900m-eth-withdrawals-3-01m-short-cuts-2508/