In a high-stakes gamble, a Bitcoin BTC/USD whale has initiated a short position of $332 million, facing potential liquidation if Bitcoin’s price surges to $85,000.
What Happened: A Bitcoin whale has opened a $332 million short position at an entry price of $84,040, as revealed by data from analytics platform Lookonchain. The position was leveraged 40 times, indicating that the trader borrowed 40 times the initial capital.
At the time of writing, Bitcoin was trading at $83,945, a 2.3% decrease over the past week, as per data from CoinGecko. If Bitcoin’s price hits the $85,000 mark, the trader’s massive position could face liquidation.
The trader, who previously netted a whopping $16.39 million within a month on the decentralized perpetual trading platform Hyperliquid, now finds himself in a precarious situation.
Also Read: Crypto Analyst Predicts 195% Bitcoin Rally, Says Bull Market Not Over Yet
Some observers anticipate an inevitable liquidation due to the high-risk nature of the 40x leverage, which could obliterate the entire position with a mere 2.5% price move.
Meanwhile, CoinGlass data reveals that crypto worth $94 million has been liquidated in the past 24 hours, with shorts making up the majority ($49 million).
The largest single liquidation happened on Binance ($582,130 with the BTC/USDT pair), accounting for 38.79% of total liquidations.
Why It Matters: This massive short position underscores the high-risk, high-reward nature of cryptocurrency trading. The trader’s previous success on the Hyperliquid platform demonstrates the potential for significant gains, but the current risk of liquidation highlights the potential for substantial losses.
This event serves as a stark reminder of the volatility inherent in the cryptocurrency market, and the potential consequences for traders who engage in high-leverage positions.
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