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:

Panic seller loses $222K in AAVE amid market fluctuation image 0

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. 

Panic seller loses $222K in AAVE amid market fluctuation image 1

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.

Panic seller loses $222K in AAVE amid market fluctuation image 2

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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