Making money on a cryptocurrency market that rallies upward is not unusual or unexpected from an average trader. However, remaining profitable throughout the bearish year on the market is something a lot of traders desire but fail to achieve — though this is not the case for our "smart money" account.
It is important to note that the smart money account did not start with nothing in its pocket. In November, investors received $1.6 million in Ethereum back when the second biggest cryptocurrency on the market was trading at $605.
2.— Lookonchain (@lookonchain) January 15, 2023
The SmartMoney received 2,675 $ETH ($1.6 million) on November 15, 2020, when the price of $ETH was $605.
Sold 2,670 $ETH for 7.77M $DAI on May 2, 2021 at a price of $2,910.
Then deposit 7M $DAI into #Compound to earn interest. pic.twitter.com/OplDbFuYEI
Swiftly after receiving Ethereum, he decided to sell his holdings for 7.77 million DAI on May 2, 2021, at a price of $2.910, and then a deposit of 7 million $DAI into Compound to earn interest. Technically, the trader decided to avoid any volatility that could have spiked on the market and leaned toward passive income.
In May 2021, when Bitcoin was trading at $57,000 at some point in the month, the trader decided to mint 86 renBTC and sell it for $3.34 million DAI at a price of $39,248. Following the further drop of Bitcoin to its new lows back in 2021, the smart money account has been successfully avoiding unnecessary losses and remained profitable.
After the bullrun reached its peak, the smart money kept trading Ethereum and wrapped Bitcoin, not wasting his or her time on assets that do not bring as much value as Ethereum and Wbtc, while creating additional and unnecessary risks.
Yesterday, our whale sold 100 wrapped Bitcoins and 4,000 Ethereum for more than $8 million DAI. According to the behavior of numerous traders and investors, including our Smart Money account, the current rally lacks support.