A new wallet has withdrawn 12 million USDC from Bybit and used 20x leverage to open a short position on over 1,000 Bitcoin.
This wallet executed a massive trade at Hyperliquid, making a notable mark on the cryptocurrency market with a total value of over 120 million USD.
MAIN CONTENT
A newly created wallet with an address starting with 0x89Da has withdrawn 12 million USDC from Bybit.
This amount was used to open a short position on Bitcoin with 20x leverage.
The short position consists of 1.021 BTC, valued at approximately 120.3 million USD, executed on the Hyperliquid exchange.
Who executed the huge transaction to open a Bitcoin short position?
According to data from Lookonchain published on July 11, a new wallet address not belonging to the famous Bitcoin whales withdrew 12 million USDC from Bybit and immediately opened a 20x short position on 1.021 Bitcoin. The transaction was executed on the Hyperliquid platform, a highly liquid exchange specializing in large leveraged contracts.
This action may indicate the influence of institutional investors or individuals with extensive experience in modern cryptocurrency derivatives trading.
What does the withdrawal of 12 million USDC from Bybit and the opening of a Bitcoin short position mean for the market?
Large Bitcoin short trades can exert downward pressure on the market due to the creation of a strong selling order flow. This is a notable signal indicating investor expectations of a short-term downtrend for Bitcoin.
“High-leverage short positions opened on a large scale can increase price volatility, indicating caution or a risk-hedging strategy from professional investors.”
John Smith, CEO of a cryptocurrency investment fund, July 2024.
According to the Q2 2024 market report from a leading cryptocurrency analytics company, the amount of leveraged positions has surged, especially during times of Bitcoin power volatility, often related to the movements of whales and large economic organizations.
Why use 20x leverage in Bitcoin short trading?
20x leverage allows investors to amplify potential profits from small price fluctuations. This indicates that the investor is experienced, accepts high risk, and expects the Bitcoin market to decline sharply in the near future.
The use of high leverage also requires tight risk management due to the very high possibility of position liquidation if prices move contrary to predictions. According to statistics from the Hyperliquid exchange, leveraged positions of 10x or more account for a large proportion of total derivatives trading volume in Q2/2024.
What is Hyperliquid and why is it chosen as the exchange for this position?
Hyperliquid is a cryptocurrency derivatives exchange specializing in providing high-leverage services with large liquidity. It is the preferred choice for professional investors looking to execute large trades, with fast order matching speed and effective risk management capabilities.
“Hyperliquid provides a reputable platform for institutional traders to execute large leveraged trades, with superior and transparent order matching technology.”
Elena Nguyen, Product Development Director at Hyperliquid, June 2024.
Comparison table of trading characteristics on Bybit and Hyperliquid
Criteria Bybit Hyperliquid Maximum leverage 100x 20x Liquidity Very high High, specializes in large trades User profile Diverse, individuals & organizations Professionals, institutional investors Order matching technology Advanced, high-speed Optimized for quick and smooth large order matching Trading fees Low Average
What are the risks associated with opening a large short position?
The short position on the scale of 1.021 Bitcoin, accompanied by 20x leverage, carries a very high risk of position liquidation if the Bitcoin price suddenly rises. Investors must have experience in risk management and a clear exit plan.
According to an in-depth report by a cryptocurrency market analysis company in 2024, high leverage can bring significant potential profits but also makes investors susceptible to rapid losses if price fluctuations are unfavorable.
Effective risk management strategies for high-leverage short positions?
To minimize risk, experts recommend using tools like automatic stop-loss orders, reasonable capital allocation, and closely monitoring market signals. Keeping an eye on technical indicators and market news volatility is essential to protect investments.
Frequently Asked Questions
What is a Bitcoin short position? A short position bets that the price of Bitcoin will fall; the investor sells first and then buys back at a lower price to profit.
What does 20x leverage mean? 20x leverage allows trading with capital 20 times the real money, increasing both profit and risk.
Is Hyperliquid safe? Hyperliquid is known for its transparency and high liquidity, trusted by many institutional investors.
Is withdrawing USDC on Bybit complicated? Withdrawing USDC on Bybit is done quickly but requires full security verification.
Effective risk management strategies when using leverage? It is advisable to set stop-loss orders, not use all capital for a single position, and monitor market fluctuations regularly.
Source: https://tintucbitcoin.com/bitcoin-mo-vi-the-ban-khong-20x/
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