Arthur Hayes, the founding father of the crypto change BitMEX, just lately made a transfer on an altcoin he had held since 2022. This transfer noticed the switch of over 230,000 GMX tokens to Wintermute Buying and selling, seemingly making a revenue of $3.2 million.

Altcoin Dropped By Its Largest Private Holder

Blockchain analysis platform Lookonchain revealed that Arthur Hayes seemingly bought his GMX holdings yesterday. Hayes was the biggest holder of GMX, the native token of decentralized perpetual change GMX.

All through 2022, the BitMEX founder spent a complete of three,383 ETH, value $5.17 million, to purchase 200,581 GMX tokens. In 2023, Hayes spent one other 60 ETH to purchase 2,328 GMX, round $105,000.

From July to December 2023, Hayes withdrew 215,428 GMX tokens from centralized exchanges (CEX). By the top of 2023, he had purchased 218,337 GMX for $6.5 million from CEX and decentralized change (DEX) Uniswap.

As of April 7, 2024, Hayes had GMX holdings value $9.7 million, per Lookonchain information. The put up revealed that Hayes had unstaked all 237,672 tokens and transferred them to an tackle linked to crypto algorithmic buying and selling agency Wintermute Buying and selling.

The transaction sparked rumors of a doable token sale by the previous CEO of BitMEX. Based on the report, the common price of shopping for by means of Haye’s accumulation part is round $29.74.  After promoting, Hayes’s income would whole over $3.2 million.

GMX buyers reacted to the information, suggesting that “nothing modified” and the altcoin was “in that purchase zone once more.”

Did Arthur Hayes Settle for Capitulation?

Crypto analyst and dealer JJcycles suggested that the transaction regarded like “Hayes capitulation.” Later, the dealer speculated why the GMX worth didn’t “tank laborious” after considered one of its largest private holders bought his tokens.

To the analyst, the incident regarded “like the value of ETH through the FTX debacle.” Based mostly on his notion, the dealer determined to purchase extra GMX tokens.

One of many largest holders of GMX ship his baggage to a market maker. Hypothesis goes that he’s promoting which is probably the most logical conclusion to make.

My query, why is worth not tanking laborious?

Feels a bit like the value of ETH through the FTX debacle.
I am shopping for extra.$GMX pic.twitter.com/jZi91vIghT

— JJcycles (@JJcycles) April 8, 2024

In a later put up, the analyst clarified what he meant along with his earlier assertion. Based on him, GMX’s capitulation appears like ETH’s capitulation in 2023.

As reported by NewsBTC, the variety of Ethereum merchants promoting at a loss elevated round August 2023. ETH’s worth bounced again from the capitulation and has continued an upward trajectory ever since.

Per the analyst charts, GMX seems to be displaying an ascending triangle sample at writing time, just like the one made by ETH throughout its capitulation. To the dealer, this means GMX may start an upward trajectory like ETH.

GMX Value Response

The GMX token shows crimson numbers in most timeframes, because it’s at present 55.5% decrease than its all-time excessive (ATH) of $91.07. The token registers a 7.9%, 28.9%, and 48.9% worth drop on the weekly, month-to-month, and yearly timeframes.

After the information of Hayes’ transaction broke, the value went from hovering between the $40.8-$40.7 worth vary to $37.1, plunging 9% in simply an hour.

Nonetheless, the altcoin rapidly began to get well from the preliminary dip.  On the time of writing, GMX is buying and selling at $40.47, a 1% drop from 24 hours in the past. Notably, the token’s market exercise skyrocketed 467.6% within the final day, with a day by day buying and selling quantity of $54.77 million.

GMX efficiency within the 3-day chart. Supply: GMXUSDT on Tradingview