The movements of crypto ‘whales,’ or individuals and entities with significant cryptocurrency holdings, are closely watched. The crypto analyst Lookonchain’s report on September 1 highlighted the manoeuvres of one such whale in the Ethereum market. This entity’s activities raise questions about risk management in crypto investments, especially when contrasted against savvy investors who seemingly anticipated market-shaking events.
This whale increased its margin to avoid liquidation after the market dropped and has lost ~$1.1M currently.
— Lookonchain (@lookonchain) September 1, 2023
The liquidation price of $BTC is $25,084 and $ETH is $1,571.https://t.co/FcgYjxmVFX pic.twitter.com/vwuzt3NpK8
The said whale has faced repeated challenges with Ethereum’s perpetual contracts. Leading up to the end of August, the whale’s long positions in Ethereum were liquidated during market downturns, resulting in a substantial $5.1 million loss. Yet, undeterred, the whale re-entered, going long on Ethereum at an entry price of $1,717. Within 24 hours, this decision appeared to be yet another misstep. To avoid another bout of liquidation, the whale had to increase its margins, already down by an estimated $1.1 million.
Simultaneously, other market players seemed to have been ahead of the curve. Analytics firm Santiment unveiled intriguing data regarding Bitcoin’s accumulation by specific addresses.
🐳 Whales & sharks may have known a thing or two about the outcome of the #Grayscale and #SEC lawsuit, with 10-10K $BTC wallets accumulating a collective $388.3M in $BTC the day leading up to the news. They were handsomely rewarded with a +6% price jump. https://t.co/j28CwVYKS6 pic.twitter.com/cx5rRuS6IV
— Santiment (@santimentfeed) August 30, 2023
These addresses, which hold between 10 to 10,000 BTC, procured a combined $388.3 million worth of Bitcoin just a day before Grayscale’s legal win against the U.S. Securities and Exchange Commission (SEC). Grayscale’s victory was rooted in its challenge against the SEC’s earlier rejection of its Bitcoin ETF application, a move Grayscale deemed discriminatory. According to experts, the timing of these purchases suggests that some players might have been privy to developments before they unfolded publicly.
Today’s market positions Bitcoin at $26,031.42, reflecting a 4.35% decline over the past 24 hours, while Ethereum trades at $1,645.05, marking a 3.51% drop. Bitcoin maintains its top position in market capitalization, and Ethereum holds onto its second spot. As the digital currency market continues its dance of dynamism and unpredictability, the contrasting tales of a beleaguered whale and well-timed investments serve as a reminder of the rewards and risks inherent in the crypto realm.
