Bitcoin Whale Takes $332 Million Short Position Amid Market Struggles
A Bitcoin whale has opened a $332 million short position at $84,040, using 40X leverage. Currently, Bitcoin is trading at $83,945. The position risks liquidation if Bitcoin prices reach $85,000. Recent data shows significant crypto liquidations across the market, with Binance being a major contributor.
Analytics platform Lookonchain has reported that a Bitcoin whale has initiated a significant short position valued at $332 million, with an entry price of $84,040. This position was taken with 40X leverage, thus the trader has effectively borrowed 40 times the original capital for this transaction. Currently, Bitcoin is priced at $83,945, reflecting a decrease of 2.3% in the past week.
If Bitcoin’s price rises to $85,000, this substantial short position would face liquidation. The trader previously accumulated an impressive profit of $16.39 million within a month on the decentralized trading platform Hyperliquid, achieving success in all eight trades across two wallets. Some commentators on social media speculate that the precarious nature of this position will lead to its eventual liquidation.
The heightened risk associated with 40X leverage means that a mere 2.5% price movement could result in the complete loss of this trader’s position. According to CoinGlass, the crypto market has seen $94 million in liquidations over the past 24 hours, predominantly from short positions totaling $49 million. The largest single liquidation was recorded on Binance involving the BTC/USDT pair, amounting to $582,130, with over 65,000 traders affected in total. Notably, Binance comprises 38.79% of all liquidations during this timeframe.
In summary, a Bitcoin whale’s newly opened short position of $332 million is highly leveraged and poses considerable risk. The trader’s potential liquidation price is set at $85,000, should the market move against the position. Given the escalating number of liquidations in the crypto market, the trading community is closely observing this situation.
Original Source: u.today
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