The crypto market is down, and institutions appear to have taken a pause on their regular crypto accumulation spree.
On Tuesday, October 14, Grayscale made huge crypto deposits involving Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), according to recent data shared by on-chain monitoring firm Lookonchain.
The leading digital asset investment firm has returned massive portions of its Bitcoin, Ethereum, and Solana holdings to Coinbase in a move that appears to be a major sell activity.
According to data provided by the source, Grayscale has deposited 1,856 BTC, 29,718 ETH, and 10,516 SOL, collectively worth about $358 million, to Coinbase Prime within the last few hours.
Is Grayscale selling?
The timing of Grayscale’s latest crypto deposits has coincided with a broad crypto market bloodbath that has seen leading cryptocurrencies trade in deep reds. Hence, the move has raised speculations about further declines in the prices of the involved cryptocurrencies.
While Grayscale has remained one of the most prominent institutional holders of BTC and ETH, traders and analysts often monitor its movements closely, considering the direct impact and influence they can have on crypto market trends.
Typically, markets often interpret large crypto inflows to centralized exchanges like Coinbase as potential sell-side liquidity movements. Hence, speculators are confident that the move pulled by Grayscale today was an attempt to sell some of its BTC, ETH, and SOL in the face of looming uncertainties.
Further data shared by the source shows that the transactions, which occurred in multiple large volumes, were sent from Grayscale’s Bitcoin Trust, Ethereum Trust, and Digital Large Cap portfolios.
While the leading crypto fund has yet to clarify speculations surrounding the crypto deposits it made today, it appears that the firm is taking caution amid high market volatility while shrinking its holdings to hedge against further losses.
Apart from Grayscale, similar moves have also been spotted among other institutional holders, stirring fear among investors that the crypto market bull run might have already concluded as the market continues to experience deeper price corrections.
A few hours after Grayscale’s crypto dumps, Bitcoin, Ethereum, and Solana have shown modest price decreases of 2.13%, 1.70%, and 0.13%, respectively, according to data from CoinMarketCap. The data further shows Bitcoin trading at $112,607, Ethereum at $4,117, and Solana at $203 as of writing time.
