Bitcoin Whale Opens a Short Position of $332 Million with 40x Leverage

According to data provided by analytics platform Lookonchain, a Bitcoin whale recently opened a short position of $332 million in Bitcoin with an entry price of $84,040.

A Bitcoin whale recently opened a short position of $332 million with an entry price of $84,040, according to data provided by analytics platform Lookonchain.

The position was opened with 40X leverage and is currently trading at a small loss. The trader started with $8,300,000 and used 40X leverage to open a short position at $84,040.

The massive position will get liquidated if the price of the leading cryptocurrency ends up spiking to the $85,000 level. At that price point, the trader’s initial capital will be fully wiped out.

The trader in question previously managed to rake in a whopping $16.39 million within a single month on popular decentralized perpetual trading platform Hyperliquid. Notably, all of his eight trades were profitable across two wallets. He first appeared on Hyperliquid in December 2022.

The trader closed out his last trade on Hyperliquid on January 24, 2024, having joined the platform back in October 2023. During his time trading on the platform, he engaged in both long and short trades, realizing gains of up to 1,648%.

Some X commentators are now predicting that the trader will inevitably get liquidated given how precarious his position is.

“These types of guys will lose it all,” one social media user said.

Another commenter added: “He’s going to get liquidated. They always do.”

The 40x leverage dramatically increases the risk of liquidation. It would take a mere 2.5% move to wipe out his entire position. For instance, if the price rises by 2.5% to $86,040 from the entry price of $84,040, the trader’s entire position would be liquidated.

Meanwhile, crypto derivatives exchange CoinGlass reports that a total of $94 million in crypto has been liquidated over the past 24 hours, with shorts making up the majority of the sum ($49 million). The largest single liquidation took place on Binance ($582,130 with the BTC/USDT pair). Overall, more than 65,000 traders have been liquidated over the aforementioned period of time. The Binance exchange accounts for 38.79% of the total liquidations.