ETH whale 0x89Da has closed a long position of 21,683 ETH with a loss of 6.6 million USD and withdrew a total of 9.6 million USD USDC from the Hyperliquid platform.
Information recorded from Lookonchain indicates that this whale has closed its long position and withdrawn all USDC assets from the DeFi service Hyperliquid, demonstrating caution in the volatile cryptocurrency market.
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ETH whale 0x89Da closed a long position of 21,683 ETH with a loss of 6.6 million USD.
Withdrew a total of 9.6 million USD USDC from the DeFi platform Hyperliquid.
What trades has ETH whale 0x89Da made in the market?
According to Lookonchain, ETH whale 0x89Da has closed a long position of 21,683 ETH worth approximately 93.5 million USD, incurring a loss of 6.6 million USD. Subsequently, this whale withdrew a total of 9.6 million USD USDC from the Hyperliquid platform.
This outcome suggests that whales may have reassessed risks during strong market volatility, gradually reducing their dependence on DeFi products to protect capital.
The quick withdrawal of capital from DeFi platforms like Hyperliquid also shows signs of caution regarding potential liquidity risks and gas fee volatility.
Why did ETH whales open long positions and withdraw USDC from Hyperliquid?
The closure of long positions at a loss of 6.6 million USD shows that whales want to cut losses and adjust their investment portfolio in the highly volatile cryptocurrency market.
The action of completely withdrawing USDC from Hyperliquid is a sign of minimizing risks associated with the DeFi platform, especially in a volatile market context or signals that liquidity may be affected.
This move may also reflect a capital preservation strategy, prioritizing asset safety by moving assets into personal wallets or more stable storage forms.
"The fact that whales are quickly closing positions and withdrawing capital is a sign of caution in the context of a highly volatile cryptocurrency market."
Cryptocurrency market analyst, 2024
How does the action of ETH whale 0x89Da affect the cryptocurrency market?
Transactions from large whales like 0x89Da often have a significant impact on liquidity and prices in the cryptocurrency market, especially Ethereum.
When a large amount of ETH is closed or liquidated, the market can experience short-term price impacts due to changes in supply and demand balance. Withdrawing USDC from DeFi platforms can also reduce liquidity on these platforms.
This action also reflects a cautious sentiment among large players, indirectly influencing the overall market trend, prompting retail investors to monitor and possibly adjust their strategies.
What signs should be noted when whales decide to close positions in cryptocurrency?
Whales often close positions when they see rising risks or expect price trends to reverse. This is accompanied by signals of declining liquidity in the market or unusual price volatility.
Experts advise monitoring the on-chain activities of whales to assess risk, while also combining technical analysis to make appropriate investment decisions.
Just tracking whale actions is not enough; investors need to understand the market context and overall trends to avoid biases in judgment.
Frequently Asked Questions
Who are ETH whales and how do they influence the cryptocurrency market?
ETH whales are wallets that hold large amounts of Ethereum, which can significantly impact price volatility and liquidity due to high-volume trading.
Why do whales close long positions at a loss?
Closing positions to cut losses is a risk management strategy when predicting unfavorable trends, preserving capital for new opportunities.
What does withdrawing USDC from DeFi platforms mean?
This is a sign that whales want to reduce risks associated with the platform or change their storage strategy to ensure asset safety.
How does the closure of long positions by whales affect ETH prices?
Large-scale trades can create temporary sell pressure, reducing ETH prices due to supply exceeding demand in the market.
How to track whale activities on the Ethereum network?
On-chain tools like Lookonchain can be used to observe trades, positions, and asset withdrawals and deposits of whales.
Source: https://tintucbitcoin.com/ca-voi-eth-lo-lon-rut-usdc/
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