A millionaire crypto investor with substantial Aave holdings “sold the dip” for a loss of about $222,000 — a classic case of panic selling amid uncertain market conditions.
In mid-October, a crypto wallet associated with the seller withdrew 20,527 Aave (AAVE) worth $3.19 million from the crypto exchange Binance. At the time, the market price of AAVE was $155.
Over the next two weeks, AAVE and many other cryptocurrencies struggled to pick up momentum.
Going against the hodl strategy
While an investor might opt for a hodl strategy, hoping for a price appreciation in the near future, the AAVE investor decided to sell off the holdings while the market was down, according to onchain analytics platform Lookonchain:
Source: Lookonchain
The seller sold off the entire 20,527 AAVE stake at a market price of $144 “in a panic to stop losses,” Lookonchain said. While some community members were amused by the seemingly rookie mistake, X user Crypto Professor X said:
“It’s a stark reminder of the importance of risk management and having a clear exit plan.”
Related: Bitcoin speculators send $4B to exchanges as BTC price loses $70K
In the last 30 days, AAVE traded highest on Oct. 15 at $165.08, according to Cointelegraph Markets Pro and CoinMarketCap data.
AAVE buy and sell timeline of the crypto investor that lost by selling low. Source: Lookonchain
Still, at the time of writing, the AAVE market price maintained a downward trajectory at $142.81.
Elon Musk’s Tesla hasn’t sold its recent crypto holdings
Check out Cointelegraph’s beginner’s guide to learn more about various ‘buy low’ and ‘sell high’ cryptocurrency trading strategies.
According to Tesla’s third-quarter 2024 earnings report from Oct. 23, Elon Musk’s car company continues to hold $184 million worth of investments in digital assets.
Tesla Q3 2024 balance sheet. Source: Tesla
In the third quarter of 2024, Tesla’s revenue exceeded $25.2 billion, slightly down from its second-quarter revenue of $25.5 billion. The company began acquiring Bitcoin (BTC) with an initial purchase of $1.5 billion in 2021.
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