Bitcoin Whale Dumps $521 Million Short for Profit, Goes Long on Melania Trump Meme Coin

A Crypto Whale Made a Profit of $3.9 Million by Closing Short Positions on Bitcoin

A large-scale player in the cryptocurrency market, known as a “whale,” opened over 300 heavily leveraged short positions on Bitcoin, totaling more than $521 million. The whale’s position was at risk of being liquidated if the price of Bitcoin rose by just 2%.

However, the whale closed the short positions on Tuesday, pocketing a profit of $3.9 million. This green trade was made despite a group of crypto traders attempting to boost the price of Bitcoin above the liquidation level.

What is a Short Trade?

A short trade is a bet that an asset’s price will drop. In this scenario, the whale had placed a short trade on Bitcoin at $83,898, with 40x leverage applied. The total trade was valued at more than $521 million. If Bitcoin had risen by just 2% from the trade’s open to $85,591, the whale’s position would have been liquidated.

The Whale’s Risky Bet

The whale’s position was highly leveraged, with the potential for significant losses if the price of Bitcoin rose. In fact, the whale’s portfolio could have been wiped out if the price of Bitcoin rose by just 2%. However, the whale’s position was also highly profitable, with a potential profit of $3.9 million if the price of Bitcoin fell.

The Attempt to Wreck the Whale’s Position

A group of crypto traders, led by pseudonymous trader Cbb0fe, attempted to boost the price of Bitcoin above the whale’s liquidation level. The group pumped over $10 million into Bitcoin, but ultimately failed in their attempt to wreck the whale’s position.

The Whale’s Profit

The whale made a 30% profit on the trade and pocketed $3.932 million. The risk involved was much higher than this, with the potential for significant losses if the price of Bitcoin rose.

Conclusion

The whale’s profit of $3.9 million is a testament to the highly leveraged and risky nature of the trade. The whale’s position was at risk of being liquidated if the price of Bitcoin rose by just 2%, but the whale’s profit was significant if the price of Bitcoin fell.

FAQs

• What is a short trade? A short trade is a bet that an asset’s price will drop.
• How did the whale make a profit? The whale made a profit by closing short positions on Bitcoin, pocketing $3.9 million.
• Who attempted to wreck the whale’s position? A group of crypto traders, led by pseudonymous trader Cbb0fe, attempted to boost the price of Bitcoin above the whale’s liquidation level.
• What was the whale’s risk? The whale’s position was highly leveraged, with the potential for significant losses if the price of Bitcoin rose.