Two cryptocurrency traders recently faced significant losses totaling $2.61 million in just one month due to their involvement with Fetch.ai (FET). Reports from SpotOnChain indicate that whales offloaded $10 million worth of FET, resulting in millionaire realized losses for these traders.
The first trader, identified as ‘Whale 0xdf8,’ sold off their entire 2.739 million FET holdings for 2,095 Ethereum (ETH), valued at $6.66 million. These sales, averaging at $2.431 per token, signaled the conclusion of the whale’s fifth FET trading cycle. Notably, these FET tokens were initially acquired on March 26 at an average cost of $3.031, resulting in a staggering $1.64 million loss for ‘Whale 0xdf8’ within just one month.
Similarly, ‘Whale 0x9eb’ also capitulated during this period, incurring approximately $977,000 in losses during their first FET trading cycle. This trader purchased 1.504 million FET for an estimated $4.55 million and later sold all of it for $3.58 million worth of three Ethereum tokens between April 1 and April 21.
The prevailing narrative of artificial intelligence (AI) dominated the cryptocurrency market in 2024, with projects like Fetch.ai experiencing substantial gains of nearly 260% year-to-date. However, the recent sell-off by millionaire whales in FET and AI cryptocurrencies may alter this trajectory, potentially leading to a loss of momentum and the emergence of new narratives.
At the time of writing, FET is trading at $2.42, showing a nearly 10% increase in the last 24 hours. Interestingly, the timing of the whales’ sell-off coincided with a positive market movement, suggesting a strategic decision to offload their holdings during favorable conditions.
In the volatile cryptocurrency space, narratives evolve rapidly, and traders must navigate them wisely. Capitulation, as seen in these cases, may sometimes be the preferred option when faced with alternative opportunities or the fear of further losses.