- An $11 billion Bitcoin whale has opened a new $235 million leveraged short position on Bitcoin.
- The short position is 10-times leveraged and faces liquidation if Bitcoin’s price rises above $112,368.
- The same investor recently made $200 million in profits from a similar short during a Bitcoin crash.
- This investor moved $540 million in Bitcoin to new wallets, including $220 million to Coinbase exchange.
- New Bitcoin whales hold roughly 45% of total whale realized capitalization but currently face $6.95 billion in unrealized losses.
An $11 billion Bitcoin whale has initiated a $235 million short position on Bitcoin with 10-times leverage, betting that the cryptocurrency’s price will decline. This position was opened on Monday when Bitcoin traded near $111,190. If Bitcoin’s price exceeds $112,368, the short may be liquidated.
Currently, the investor is facing an unrealized loss of about $2.6 million on this position. This move follows a similar leveraged short that earned the whale approximately $200 million during a recent Bitcoin crash to around $100,000.
Leverage allows investors to borrow capital to increase their trading position beyond their actual holdings. While leverage can increase potential gains, it also heightens the risk of significant losses, including the total investment.
In addition to the short, the whale transferred about $540 million worth of Bitcoin to new wallets over the past week. Of this amount, $220 million was moved to Coinbase exchange wallets. This investor previously converted approximately $5 billion in Bitcoin into Ether, temporarily becoming one of the top holders of Ether.
Recent data shows that new Bitcoin whales are experiencing a combined unrealized loss of about $6.95 billion as Bitcoin falls below the $113,000 mark, a level critical for their average cost basis. These whales hold nearly 45% of the total whale realized capitalization.
Bitcoin’s recent price drop to $104,000 has been interpreted as a healthy market correction that eliminated excess leverage. Meanwhile, the supply held by short-term Bitcoin holders has increased, indicating that more speculative investors are actively participating in the market. Further details are available in this recent blockchain data report and analytics updates.
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