The Bitcoin whale has sent 6 million USD in stablecoin USDC to the Hyperliquid platform to avoid liquidation of the short BTC position.
Information from Lookonchain indicates that the whale holding more than 1,266 BTC currently faces a liquidation price of 127,780 USD, incurring a loss of about 12.5 million USD.
MAIN CONTENT
The Bitcoin whale used 6 million USDC sent to Hyperliquid to avoid liquidation.
The amount of BTC held is 1,266.84, equivalent to 154 million USD.
The current liquidation price is 127,780 USD, with a loss of 12.5 million USD.
What mechanism has the Bitcoin whale used to avoid liquidation of its position?
The Bitcoin whale has sent 6 million USDC to Hyperliquid to increase collateral to reduce the risk of liquidation on the short BTC position.
This action reflects the experience and professional risk management tactics in cryptocurrency derivatives trading by leveraging stablecoin assets to maintain positions. Hyperliquid is known as a platform that supports opening and closing positions, and is also an effective tool that helps whales maintain liquidity in adverse market conditions.
What is the current process and status of the BTC position held by the whale?
The whale is holding more than 1,266 BTC, equivalent to 154 million USD at the current market price.
The liquidation price for this position is 127,780 USD, lower than the market BTC price, causing the whale to incur a loss of about 12.5 million USD. This is no small challenge for large investors holding long-term short positions in a highly volatile market.
Using USDC as collateral on Hyperliquid helps the whale minimize the risk of liquidation when the market experiences strong fluctuations.
Cryptocurrency market analyst, 2024
What role does Hyperliquid play in managing the large positions of whales?
Hyperliquid helps users increase their margin assets and maintain derivative positions thanks to the feature of sending stablecoins as collateral.
Whales can leverage this platform to flexibly adjust their margin levels and reduce liquidation risk when prices fluctuate. This is a demonstration of the trend of utilizing DeFi tools in managing trading risk in cryptocurrency by professional investors.
Example of the correlation between the position and the loss of the whale
Interpretation Value Index Number of BTC 1,266.84 BTC Amount of Bitcoin held Current value 154 million USD Market value assessed at the current BTC price Liquidation price 127,780 USD The threshold price that, if exceeded, will result in liquidation of the position Current loss 12.5 million USD Estimated loss due to the market price being higher than the liquidation price
Frequently Asked Questions
What is Hyperliquid and what is its role in cryptocurrency trading?
Hyperliquid is a platform that supports sending stablecoins as collateral to help manage derivative positions and reduce the risk of liquidation in volatile markets.
What strategies do Bitcoin whales usually use to manage risk?
They use stablecoins to increase collateral, flexibly adjust positions on platforms like Hyperliquid to limit the risk of liquidation.
Why is the liquidation price important for large positions?
That is the threshold price beyond which the position will be liquidated, significantly reducing the whale's investment capital.
What does the 12.5 million USD loss of the whale reflect?
Reflecting the gap between the current market price and the liquidation price puts the short position under pressure to incur temporary losses.
Is there much change in the amount of BTC and the value held by the whale?
The information is updated based on the On-chain status and BTC price movements; fluctuations are normal in the cryptocurrency market.
Source: https://tintucbitcoin.com/ca-voi-btc-rot-6-trieu-usdc/
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