Amid rumors of a Fed rate cut and options expiration, the Ethereum Foundation moves 35,000 ETH to Kraken, its largest transaction of 2024.
The Ethereum Foundation has been progressively decreasing its ETH holdings for the past few months. The foundation has transferred its largest pile in 2024 today, in the Fed rate reduction speculation and the expiration of ETH options.
Ethereum Foundation biggest ETH transfer of 2024
The Kraken exchange has received 35,000 ETH, approximately equivalent to $94.07 million, in the greatest transaction of the year conducted by the Ethereum Foundation. This follows a series of minor disposals over the past few months, during which the foundation sold 2,516 Ether for $7.4 million in DAI.
This particular transfer is significant due to its magnitude and its contribution to the ongoing discussion about the Ethereum Foundation’s approach and timing in managing its resources. The crypto community has paid considerable attention to the foundation’s recent activities, as it has been credited with sound market judgment for selling a substantial quantity during market highs.
Timing in the Context of Fed Rate Speculation
The general market trends influenced by Federal Reserve rate reduction expectations can be linked to this substantial transfer from the Ethereum Foundation. Fed Chair Jerome Powell proposed potential policy modifications during his speech at Jackson Hole, which resulted in a surge in the prices of Bitcoin and ETH.
Additionally, the expiration of 140,000 Ether options, which have a notional value of $370 million, further agitated the market. The price direction of Ethereum in the near term has been the subject of further speculation, as the increased trading activity has resulted in increased open interest and trading volume. The utmost pain point for these options is $2,625.
Developers have suggested that a new revision, “Fulu-Osaka,” will be introduced concurrently with the transition. In the 140th All Core Developer Consensus Conference Call (ACDC), EtherCast developers discussed this update, according to a recent report by CoinGape. The future upgrade may affect the network’s Fulu-Osaka efficacy, which could result in an even greater interest in ETH.
Strategic Management and Historical Context
The Ethereum Foundation has historically exhibited a pattern of selling substantial quantities of Ether during market peaks. During the apex of the previous bull market cycle in November 2021, it sold 20,000 ETH, emphasizing this trend.
In 2017, Vitalik Buterin, the co-founder, disclosed that the foundation had sold 70,000 ETH at the height of the market rally that year. These decisions have frequently been perceived as strategic, as they capitalize on market conditions to enhance the foundation’s financial position.
The foundation’s substantial transfer in July, which involved the transfer of 92,500 ETH, valued at $294.9 million, to a new wallet, was also followed by the recent transaction. This was the foundation’s initial substantial transfer over six years, intensifying speculation regarding its long-term strategy. This notwithstanding, the price of ETH has remained relatively consistent following the transfer, currently trading at approximately $2,729, a 4% increase in the past 24 hours.
