The internal whale @qwatio had to liquidate an additional short position of 50 million USD after multiple injections and liquidations in the cryptocurrency market, indicating high risk when rapidly rotating capital in large leveraged trades.
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Whale @qwatio liquidated a short position of about 50 million USD after adding new positions.
Shorting using 40x and 25x leverage with BTC and ETH creates significant risks due to strong price volatility.
The short position has gone through the cycle of 'liquidation – replenishment – liquidation', decreasing from 250 million USD to 200 million USD.
How much short position has the internal whale @qwatio liquidated in the cryptocurrency market?
According to on-chain analysis by expert Yu Jin and monitoring data of whale positions by @qwatio, the short position that was liquidated this time was approximately 50 million USD, down from an initial level of up to 250 million USD.
After expanding the short position and BTC dropped to 105,500 USD, the position nearly recovered but was not closed; the recent price increase caused this whale to be liquidated on an additional position worth 50 million USD. This move shows strong volatility and significant leverage risk in the trading of the internal whale.
In high-leverage trades, poor risk management will lead to continuous liquidation cycles, placing significant financial pressure on investors.
Nguyen Van Hung, On-chain Data Analysis Director, 2024
What is the structure of positions and leverage that whale @qwatio has used?
Whale @qwatio used 40x leverage to short 1,131 BTC worth 122 million USD, with the position opened at 106,697 USD and liquidation price at 108,768 USD. At the same time, a short position of 33,000 ETH worth 82.58 million USD used 25x leverage, with an opening price of 2,452 USD and a liquidation price of 2,508 USD.
High leverage makes positions prone to liquidation when market prices experience unfavorable fluctuations, even if not large, which explains the situation of 'liquidation → replenishment → re-liquidation' occurring multiple times, leading to a decrease in total short positions from 250 million USD to 200 million USD.
What do the liquidation and replenishment cycles of this whale reflect about the cryptocurrency market?
The consecutive cycles of liquidation and replenishment of short positions by whale @qwatio indicate that the cryptocurrency market is highly volatile and complex, especially in trades using high leverage. Sudden price increases and decreases cause risky positions to be quickly forced into liquidation, while the whale still tries to increase positions to take advantage of falling prices.
This demonstrates the quick movement capability of large capital flows, but also warns of high risks for individual investors when mimicking aggressive leverage strategies without strict risk management tools.
The cryptocurrency market always experiences fierce competition among whales with high leverage, causing unpredictable price volatility.
Dao Quang Minh, Crypto Research Expert, 2024
Comparison table of the short positions of BTC and ETH held by whale @qwatio
Metrics BTC ETH Short Volume 1,131 BTC 33,000 ETH Position Value (USD) 122 million USD 82.58 million USD Leverage Used 40x 25x Opening Price 106,697 USD 2,452 USD Liquidation Price 108,768 USD 2,508 USD
Frequently Asked Questions
How many times has whale @qwatio liquidated short positions? According to analysis, the whale has gone through multiple liquidations and replenishments, reducing the total short position from 250 million USD to 200 million USD. What is the highest leverage used by @qwatio? The highest leverage used for the BTC short position is 40x, while the ETH short used 25x leverage. How do the whale's liquidations affect the market? Large position liquidations often cause temporary price volatility and can create a domino effect in the cryptocurrency market. What is a liquidation price and how does it affect? The liquidation price is the price level at which a position is forced to close, significantly impacting liquidity and market sentiment. How can individual investors avoid risks when trading with leverage? It is advisable to use risk management tools, not borrow too much leverage, and closely monitor market fluctuations.
Source: https://tintucbitcoin.com/ca-voi-ethereum-qwatio-bi-thanh-ly-lan-nua/
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