Bitcoin BTC/USD Whale Opens $332M Short Position, Facing Liquidation if Bitcoin Price Rallies to $85k

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.

A Bitcoin BTC/USD whale has put up a large short position of $332 million, which could be liquidated if Bitcoin’s price rises to $85,000.

What Happened: A Bitcoin whale has placed a short position of 3,940.8 BTC, valued at $332 million at an entry price of $84,040, according to data from blockchain analytics platform Lookonchain. The position is leveraged 40 times, meaning the trader borrowed 40 times the initial capital.

At the time of writing, Bitcoin is changing hands at $83,945, down 2.3% over the past week, according to CoinGecko.

If Bitcoin’s price reaches $85,000, the trader’s massive position could get liquidated.

"This guy shorted BTC with 40x leverage again, with a position of 3,940.8 BTC($332M) and a loss of over $1M!Entry price: $84,040.8Liquidation price: $85,300"

The trader, who previously made $16.39 million in a month on the decentralized perpetual trading platform Hyperliquid, is now facing a setback.

Some crypto traders noted that the 40x leverage is "no joke," adding that the entire position could be wiped out with a 2.5% price movement from the liquidation price.

According to data from CoinGlass, cryptocurrencies worth $94 million were liquidated in the past 24 hours, with shorts making up the majority at $49 million. The largest single liquidation happened on Binance for the BTC/USDT pair at $582,130, which accounts for 38.79% of total liquidations.

See More: Top 5 Crypto Liquidations In The Past 24 Hours

Why It Matters: This massive short position highlights the high-risk, high-reward nature of cryptocurrency trading. The trader’s previous success on the Hyperliquid platform showcases the potential for significant gains, but the current risk of liquidation underscores 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 in cryptocurrencies.

At the time of writing, Bitcoin is trading at $83,945, showing a 2.3% decrease over the past week, according to data from CoinGecko.