Bitcoin Whale’s $332 Million Short Position Faces Liquidation Risk
A Bitcoin whale has opened a $332 million short position at $84,040 using 40X leverage. Bitcoin is currently trading at $83,945, indicating a potential liquidation could occur if prices reach $85,000. The trader previously earned $16.39 million from successful trades. Liquidation risks are heightened due to the substantial leverage used in this position.
A notable Bitcoin whale has established a short position valued at $332 million, marked by an entry price of $84,040, as reported by analytics platform Lookonchain. This position utilizes a substantial leverage of 40 times the initial capital contributed by the trader.
Currently, Bitcoin is trading at $83,945, representing a 2.3% decrease over the last week, according to CoinGecko. The significant short position may face liquidation if Bitcoin’s price appreciates to $85,000.
Previously, this trader accrued an impressive $16.39 million in profits in just one month on the renowned decentralized trading platform Hyperliquid, achieving 100% profitability across eight trades managed in two wallets. However, commentators on social media speculate that the trader may face liquidation soon due to the risky nature of the investment.
The high leverage of 40 times increases the likelihood of liquidation, which could occur with a modest 2.5% price change. While this leverage magnifies potential profits, it also escalates the risk. As reported by CoinGlass, crypto worth $94 million was liquidated in the past 24 hours, with shorts accounting for the largest portion. Binance recorded the most significant liquidation event, totaling $582,130 with the BTCUSDT pair.
In summary, a Bitcoin whale has opened a high-risk short position of $332 million with considerable leverage, raising concerns about potential liquidation. The trader’s previous successes and current market conditions have drawn attention and speculation about the sustainability of this position. Liquidations in cryptocurrency markets remain significant, indicating heightened volatility.
Original Source: www.tradingview.com
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