Trend Research’s Ethereum Exit Results in Nearly $750 Million Losses, but Did It Sell at the Bottom?
Trend Research, an funding agency led by Jack Yi, founding father of Liquid Capital, has bought its complete Ethereum (ETH) place, reportedly locking in losses of almost $750 million.
The large-scale sell-off comes as Ethereum continues its broader downturn, with the altcoin down greater than 30% in the previous month. The value efficiency has reignited debate over whether or not ETH is approaching a market backside.
Trend Research Sells Ethereum Amid Market Volatility
BeInCrypto recently reported that Trend Research started transferring Ethereum to Binance at the starting of the month. On-chain analytics platform Lookonchain confirmed that the agency accomplished the sell-off yesterday.
In whole, Trend Research moved 651,757 ETH, value roughly $1.34 billion, to Binance at a mean value of $2,055. The transactions lowered the agency’s ETH holdings to only 0.0344 ETH, valued at round $72.
Data from Arkham Intelligence corroborates the near-complete exit, exhibiting residual balances of roughly $10,000 in USDC and minor quantities of different tokens.
“The whole loss is ~$747 million,” Lookonchain wrote.
The exit adopted a leveraged technique constructed on the decentralized finance (DeFi) lending protocol Aave. An analyst explained that Trend Research initially purchased ETH on centralized exchanges and deposited it as collateral on Aave.
The agency then borrowed stablecoins towards the collateral and repeatedly reinvested the borrowed funds into further ETH purchases, making a recursive leveraged place that considerably elevated each publicity and liquidation danger.
As ETH’s value continued to say no, the place moved nearer to the liquidation threshold. Rather than danger compelled liquidation, Trend Research selected to unwind the complete place voluntarily.
While Trend Research pivoted to promoting, BitMine has taken the reverse method. Despite mounting unrealized losses, the agency has continued to extend its publicity, lately buying $42 million worth of Ethereum.
What an Ethereum Market Bottom Could Mean for Bitmine and Trend Research
The opposing methods come amid a interval of heightened market volatility for Ethereum. BeInCrypto Markets information exhibits that the second-largest cryptocurrency has declined 32.4% over the previous month.
On February 5, ETH additionally slipped under $2,000 before recovering. At press time, Ethereum was buying and selling at $ 2,094.16, up round 0.98% over the previous 24 hours.
Amid the downturn, some analysts have steered that Ethereum could also be approaching a market backside. One analyst described Trend Research’s exit as the “largest capitulation sign.”
“Such compelled exits usually occur close to main lows,” Axel said.
Joao Wedson, founding father of Alphactal, additionally famous that Ethereum’s value backside is more likely to happen months earlier than Bitcoin’s, citing the sooner liquidity cycle usually noticed in altcoins.
According to Wedson, some chart indicators recommend that Q2 2026 might mark a possible value backside for ETH.
“Some charts already point out that Q2 2026 might mark a possible value backside for ETH. Capitulation has arrived, and realized losses are set to extend sharply,” Wedson added.
While no backside has been confirmed but, the risk might carry broader implications for institutional sentiment, notably as some companies select to de-risk whereas others proceed to build up amid ongoing market weak point.
If Ethereum is certainly approaching a market backside, BitMine’s continued accumulation could prove well-timed, positioning the agency to profit from a future restoration.
However, if draw back stress persists, Trend Research’s resolution to totally unwind its place could in the end be seen as a prudent transfer to restrict the dangers related to leveraged methods.
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