Trend Research Loses $747M After Massive Ethereum Sell-Off

Highlights:

• Trend Research lost $747M after redepositing ETH at much lower prices.
• Founder Jack Yi said the sale was to manage risk, not change plans.
• Other major holders like Garrett Jin and “7 Siblings” are also reducing Ethereum positions.

Trend Research slashed its Ethereum (ETH) holdings, Lookonchain data shows. The firm withdrew 792,532 ETH ($2.59B) from Binance at $3,267 and later redeposited 772,865 ETH ($1.8B) at $2,326, resulting in a $747M loss. The company now holds just 21,301 ETH ($43.92M). This followed their earlier sales, adding more stress to the market.

Trend Research is a trading firm led by Jack Yi of Liquid Capital. The firm made a $2 billion long bet on ETH earlier. They borrowed stablecoins from Aave using ETH as collateral. They expected a rebound after Ethereum fell below $4,000 in October. The bet did not work because ETH kept falling, which put Trend Research’s looped ETH position in danger. As prices dropped, the stablecoin collateral backing their leveraged position shrank, but the fixed debt remained large.

The final blow came this month when ETH fell sharply alongside Bitcoin, reaching $1,750 on Feb 4, the lowest level since April last year. In response, Trend Research liquidated over 300,000 ETH, according to Bubble Maps. Yi says he is still bullish but admits he called the bottom too early. He will wait for a recovery while managing risk.

Major Holders Join Ethereum Sell-Off Amid Liquidation Risks

Other large holders have also joined the sell-off. Garrett Jin has been liquidating his portfolio, with reports showing that both Jin and Trend Research used the same Binance deposit address. This has fueled speculation about possible internal links between the two entities.

Meanwhile, the group known as “7 Siblings” is close to its liquidation threshold. They hold nearly 287,000 ETH, with liquidation levels set at $1,029. If prices continue to slide, their position could face forced liquidation, adding more pressure to the market.

Vitalik Buterin and BitMine Add to Concerns

Ethereum co-founder Vitalik Buterin has also sold some tokens recently. Over the past week, he sold 2,900 ETH worth $6.6 million, averaging $2,228 per ETH. This added to worries about rising selling pressure from key figures in the ecosystem. 

Meanwhile, BitMine, Ethereum’s largest treasury holder, faces billions in unrealized losses. Tom Lee said his firm will keep buying tokens, showing a clear divide between those reducing risk and those betting on Ethereum’s long-term potential.

Ethereum Recovers Above $2000 as Bitcoin Nears $70,000

At press time, Ethereum made a recovery as Bitcoin approached $70,000. ETH was trading at $2,061, reflecting a 7.19% increase in the past 24 hours. Still, this rebound has not erased the heavy losses suffered by institutions and individual investors.

The market cap climbed back above $2.4 trillion, but trading volume fell to about $200 billion from its peak near $306 billion during the sell-off. The crypto ETF saw gains after 2 to 3 days of outflows. Market trends show a bullish tilt, but extreme fear keeps traders and investors cautious.