Several whales are doubling down on their investments in ETH and WBTC
Several whales have placed sizeable bets on the two biggest cryptocurrencies by market capitalization despite recent dips in the cryptocurrency market.
Lookonchain claims that the whales have put significant sums of ETH and Wrapped Bitcoin (WBTC) into DeFi protocols to secure long positions.
— Lookonchain (@lookonchain) April 23, 2023
The investor borrowed stablecoins in exchange for deposits of both ETH and WBTC using the DeFi protocols. After that, the stablecoins were moved to the well-known cryptocurrency exchange Binance, which used them to buy more ETH and BTC.
Despite recent pressure on their values, the strategy seems to be a wager on the future growth of these cryptocurrencies.
In one specific case, the person made a 24-hour total transfer of 10,100 ETH (worth $18.81 million) into the DeFi protocol Morpho AAVE. After that, they borrowed stablecoins worth $11.5 million, which they later sent to Binance.
Although the quantity of WBTC involved in the transactions is unknown, the tweets from Lookonchain imply a sizeable sum. Over the past week, Ether and Bitcoin prices have fallen 8.8% and 10.4%, respectively.
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