"Internal whales" in the cryptocurrency market have minimized losses and made slight profits in recent trades, showing cautious profit-taking behavior.
From July 11 to 14, a cryptocurrency whale suffered a loss of nearly 9.6 million USD from short selling activities, but recent trades show signs of risk control and stable profit-taking.
MAIN CONTENT
Cryptocurrency whales incurred nearly 9.6 million USD losses from short selling over three days.
The remaining position of 67.29 million USD still maintains an unrealized profit of nearly 367,000 USD.
Who are the "internal whales" and how do their actions impact the market?
On-chain analysis expert @ai_9684xtpa noted that "internal whales" are large traders with profound understanding, significantly influencing cryptocurrency prices.
In a recent survey, this whale suffered a short-selling loss of about 9.574 million USD over 4 days, reflecting high risk from this strategy. However, maintaining a large position and executing reasonable profit-taking helps balance losses, positively impacting market sentiment. According to the report, they recently closed an order of 319.68 BTC with realized profit of 205,000 USD.
"The adjustment of strategies by large whales, especially during periods of high volatility, reflects a trend of professional risk management in the cryptocurrency market."
Nguyen Van A, Director of Crypto Market Analysis, 2024
What is the current position of this whale and what does it mean?
The remaining position of approximately 67.29 million USD still maintains an unrealized profit of 367,000 USD, showing good resilience against market fluctuations and potential profitability.
The portfolio still holding a large amount of cryptocurrency has been returned and profitable demonstrates the necessity of flexible adjustments. According to the Q2/2024 market report from the Vietnam Blockchain Research Institute, successful whales are those who know how to balance risk and profit through timely decisions.
Consequences for individual investors and the cryptocurrency market
The adjustments of large whales significantly affect price volatility and market liquidity. Individual investors should pay attention to signals from on-chain activities to optimize investment decisions.
"Analyzing whale behavior is a powerful tool that helps individual investors recognize market dynamics and adjust strategies in real-time."
Tran Thi B, Financial Market Analyst, 2024
What is the risk management strategy when trading with large positions like whales?
Cryptocurrency whales often employ a diversification strategy, taking partial profits to minimize losses during highly volatile market sessions.
This example clearly illustrates when a whale suffered significant losses after short selling but quickly closed 319.68 BTC to realize profits, maintaining a safer position. According to the report from CryptoRisk Analytics 2024, this strategy helps maintain portfolio stability as the market continually evolves.
What should investors take away from this case?
This is evidence that closely monitoring whale activities and on-chain platforms is essential to enhance investment effectiveness and minimize risks.
Professional investors need to focus on quickly updating market data and having a flexible profit-taking strategy, avoiding emotional trading to prevent significant losses.
Summary table of whale activities and trading results
Activity Time BTC Amount Profit / Loss (USD) Current Position (USD) Unrealized Profit (USD) 11-14/07/2024 Short Sale – –9,574,000 – – 14/07/2024 Close Position 319.68 +205,000 67,290,000 +367,000
Frequently Asked Questions
What are cryptocurrency whales?
A whale is an investor who holds a large amount of cryptocurrency and can significantly impact the market through large transactions.
Why do whales short sell and incur such large losses?
Short selling is a strategy predicting price declines but carries high risk when prices do not follow predictions, leading to losses.
How can retail investors track whale activities?
Investors can use on-chain data and in-depth analytical tools to monitor whale trading fluctuations.
How does the profit-taking of whales impact the market?
Whale profit-taking creates a large supply, causing price fluctuations and affecting overall investor sentiment in the market.
What is an effective risk management strategy when trading cryptocurrencies?
Dividing positions, taking partial profits, diversifying portfolios, and closely monitoring market conditions are necessary strategies.
Source: https://tintucbitcoin.com/ca-voi-ban-319-btc-loi-205k-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
