The hacker responsible for the recent exploit on Indian cryptocurrency exchange WazirX has been accumulating Ethereum (ETH), in a move analysts believe is linked to the upcoming launch of a spot Ethereum ETF.
On-chain data reveals the hacker converted all stolen altcoins, amassing a total holding of 59,097 ETH, currently valued at over $200 million. This comes just four days before the anticipated launch of the first-ever spot Ethereum ETF in the United States.
Swapping Altcoins for Ethereum
According to on-chain data provider Spot on Chain, the hacker’s Ethereum holdings reflect a combination of stolen funds and acquired assets. The breakdown includes:
- 15,298 ETH ($52 million) were directly stolen from the exchange.
- 43,799 ETH ($149 million) obtained by selling off various altcoins, including Shiba Inu (SHIB), Polygon (MATIC), and Pepe (PEPE). Notably, the sale included a massive 5.43 trillion SHIB tokens, worth approximately $90.2 million.
Interestingly, the hacker retains a holding of other altcoins valued between $12 and $15 million, including CHR, CELR, OOKI, and FRONT.
Betting on the Ethereum Rally
Experts believe the hacker’s actions suggest a bet on the potential rise in Ethereum’s price following the ETF launch. Unlike other altcoins that experienced significant price drops after the WazirX exploit, Ethereum has exhibited relative stability, hovering around $3,420.
The SHIB token, in particular, witnessed a sharp decline of over 10% on Thursday, likely due to the hacker’s large-scale selling.
Ethereum Price Predictions
The anticipation surrounding the spot Ethereum ETF has fueled excitement among investors. Over the past week, ETH’s price has already climbed by 10%, reaching $3,500 amidst a broader market recovery. Analysts predict a further surge towards $4,000 and potentially beyond in the weeks following the ETF’s introduction.
Technical analysis by Income Sharks also suggests a bullish outlook for Ethereum. While a minor pullback may occur for a trendline retest, the overall trajectory appears to be one of a strong uptrend.
The WazirX hacker’s move highlights the growing interest in Ethereum and the potential impact of the upcoming ETF launch on the cryptocurrency‘s price.