Bitcoin Updates: Major Bitcoin Whale Faces $250 Million Liquidation as Holdings Crumble
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This liquidation took place during a global crypto market crash totaling $217 million, fueled by a wave of margin calls and leveraged position failures. Bitcoin dropped below $113,000, and Ethereum slipped under $4,000, intensifying the decline as automated liquidations kicked in. The whale’s 13x leveraged bet, initially worth $2.5 billion, became unsustainable as key support levels were breached. The incident highlights the vulnerability of leveraged trades in the digital asset space, where swift price changes can lead to widespread market disruptions.
International political developments further complicated the market’s instability. Tensions between the U.S. and China, which had previously sparked a $19 billion crypto selloff in October, eased after President Trump revealed plans to meet with Chinese President Xi Jinping in South Korea, according to a Crypto.news report. Additionally, Trump’s recent pardon of Binance founder Changpeng Zhao and his commitment to making the U.S. "the crypto capital of the world" lifted investor confidence. Nevertheless, these positive signals were tempered by a 97.8% probability of a 25-basis-point interest rate cut by the Federal Reserve in October—a move that typically weighs on risk assets, as noted by Lookonchain.
The "100% Win Rate Whale" is not alone in facing challenging market conditions. Another significant investor, known by the address "0xc2a," recently increased its leveraged ETH holdings by purchasing 1,242 ETH, bringing its total position to $366 million. In contrast, the "Steady as a Rock" whale has held onto a 40x leveraged BTC position for ten days, despite an unrealized loss of 140%, illustrating the high-risk environment of leveraged trading.
Experts point to excessive leverage and abrupt price shifts as the main drivers behind the rapid liquidations, which set off a chain reaction of forced selloffs. "This is a classic case of a liquidation cascade," one analyst commented, noting that automated trading platforms intensified the downturn. In just 24 hours, more than $167 million in long positions and $50 million in shorts were wiped out, with Bitcoin and Ethereum bearing the brunt of the losses.
Despite recent losses, some analysts believe the correction could create conditions for a more sustainable recovery. The removal of weaker positions may help stabilize the market, especially if institutional players return. Bitcoin continues to represent 47.8% of the entire crypto market’s value, while Ethereum accounts for 19.3%, indicating persistent interest in decentralized finance and staking.
