Whale's PEPE Sell-Off Triggers 3.091% Price Drop

Pepe's latest price was $0.00001117, down 3.091% in the last 24 hours. This significant event involving the cryptocurrency Pepe was reported by BlockBeats News. According to crypto analyst ai_9684xtpa, a whale identified by the address 0x6ea...41FE0 is suspected of offloading 609 billion PEPE tokens. These tokens were accumulated approximately a month prior to the transaction. The analyst noted that if the whale were to sell these tokens, it would incur a loss of $1.185 million. This event highlights the volatility and risk associated with holding large amounts of cryptocurrency, as the whale's actions suggest a potential panic sell-off.

Additionally, during the period from May 17 to May 18, the same whale withdrew 2.2 trillion PEPE tokens from an exchange. The total value of these tokens was approximately $27.63 million, with an average price of $0.0000125 per token. Subsequently, the whale is suspected of panic-selling 160 million tokens, resulting in a loss of $2.042 million. This series of transactions underscores the speculative nature of the cryptocurrency market and the potential for significant financial losses during periods of market instability.

The recent crash of Bitcoin and other altcoins, including Pepe, was attributed to rising geopolitical concerns. This crash was characterized as a knee-jerk reaction or an overreaction to significant events. Historically, risky assets like stocks and cryptocurrencies have experienced sharp declines during black-swan events, such as the onset of the Covid-19 pandemic in 2020. During this period, many investors predicted the "end of the world," leading to a significant plunge in the value of these assets.

Another notable event that triggered a similar reaction was Donald Trump's "Liberation Day" speech, in which he introduced "reciprocal" tariffs on all countries, including allies and foes. This announcement led to a crash in Bitcoin's price to $74,500, which in turn triggered a bigger dive among other altcoins. The crypto market crash that followed the collapse of FTX in late 2022 is another example of how significant events can cause a temporary decline in the value of cryptocurrencies. However, Bitcoin and other altcoins have historically shown resilience and have bounced back after such events.

Despite the recent crash, the demand and supply dynamics for Bitcoin and other altcoins remain supportive. Data shows that spot Bitcoin ETFs had net inflows of over $86 million on Friday, bringing the cumulative total to over $45 billion. BlackRock’s IBIT had net inflows of $288 million on Thursday, which was offset by a $197 million outflow from Fidelity’s fund. IBIT now has over $72 billion in inflows, while Fidelity’s FBTC has $21.1 billion, and Ark Invest has $5 billion. Spot Ethereum ETFs are also attracting substantial inflows, with net inflows of over $112 million on Thursday, and BlackRock’s ETHA having inflows of $101 million, bringing its net assets to $4.5 billion. These funds have had inflows in the last five consecutive weeks.

At the same time, the supply of Bitcoin and Ethereum on exchanges has continued to fall this year. Bitcoin supply on exchanges has dropped to 1.1 million from the year-to-date high of $1.5 million. The supply of Ethereum has also continued to fall. These ongoing demand and supply metrics suggest that Bitcoin and other altcoins like Pepe, Bonk, and Floki may experience a rebound in the coming days. The strong technicals of Bitcoin, as indicated by its daily chart, further support this possibility. The chart shows that Bitcoin formed a double-top pattern at $109,200 and then formed a rounded bottom, confirming the cup section of the cup-and-handle pattern, a popular bullish signal. Bitcoin is now forming the handle section of this pattern, with a target of $143,000. This technical analysis suggests that Bitcoin will likely bounce back in the coming days, which could trigger more gains among altcoins.