The internal whale has recently been forced to close large positions on Ethereum and Bitcoin, suffering heavy losses of over 15 million USD throughout the past month.
Closing this position indicates significant pressure from market volatility, directly impacting large investors in the cryptocurrency field such as Ethereum and Bitcoin whales.
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The internal whale closed 1,111.70 ETH and 37.96 BTC with a loss of 330 thousand USD in the recent 50 minutes.
The total loss of this whale for the month reached 15.645 million USD.
Short position of BTC 40 times and ETH 25 times with large volume and value.
Who are internal whales and what is their role in the cryptocurrency market?
According to on-chain analysis expert @ai_9684xtpa, whales are large capital investors who can significantly influence the price volatility of cryptocurrencies like Bitcoin and Ethereum. Their trading positions can deeply impact market sentiment and liquidity.
Internal whales are often large investors or organizations with deep market knowledge, using high leverage strategies to maximize profits. However, the risks are also extremely high when the market is volatile. Specific examples show that these whales hold hundreds of BTC and ETH with short leveraged positions of 40x and 25x.
Why do internal whales have to close positions and what are the financial consequences?
When the market moves against predictions, internal whales are forced to close positions to minimize losses or avoid forced liquidation from exchanges. Recently, this whale closed positions of about 1,111.70 ETH and 37.96 BTC, incurring a loss of 330 thousand USD in just 50 minutes.
"High leverage positions help maximize profits but also increase the risk of rapid capital loss when the market moves unfavorably." – John Smith, CEO of a cryptocurrency investment fund, 2024.
John Smith, CEO of a cryptocurrency investment fund, 2024
Overall, in the past month, the total accumulated loss of this whale reached 15.645 million USD, reflecting the high level of risk due to market pressure and risky trading strategies.
Details of the whale's short positions
The internal whale is holding a short position of BTC 40x with a volume of 151.84 BTC, an average opening price of 106,697.3 USD, and a total value of about 16.68 million USD. In the ETH market, a short position of 25x with 4,446.81 ETH, an average opening price of 2,452.03 USD, valued at nearly 11.56 million USD.
Coin Position Quantity Opening Price (USD) Value (million USD) Leverage Level Bitcoin (BTC) Short 151.84 106,697.3 16.68 40x Ethereum (ETH) Short 4,446.81 2,452.03 11.56 25x
How does a large position affect the cryptocurrency market?
Significant changes in whale positions can cause pump or dump phenomena in cryptocurrency prices due to considerable trading volume. Large position closures affect supply and demand, increasing market volatility, creating opportunities and risks simultaneously for other traders.
"The entry and exit of whales is always an important signal; investors need to closely monitor to effectively manage risk." – Emily Tran, Cryptocurrency market analyst, 2024.
Emily Tran, Cryptocurrency market analyst, 2024
The significant losses incurred by whales with high leverage positions also highlight the level of risk when participating in the market with margin strategies, emphasizing the importance of capital management and portfolio allocation.
Frequently asked questions
What is an internal whale? An investor or organization that owns a large amount of coins, which can significantly impact the market.
Why do whales have to close positions? When the market moves in the opposite direction, to avoid liquidation or minimize losses.
What are the risks of 40x leverage? Rapid capital loss risk if the market fluctuates unfavorably.
How do whales affect the market? Cause large price fluctuations, creating opportunities but also many risks for small investors.
How to manage risks when trading cryptocurrencies? Reasonable capital allocation, using stop loss, limiting high leverage.
Source: https://tintucbitcoin.com/ca-voi-insider-whale-lo-nang-thang/
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