Recently, the price of Bitcoin unexpectedly plummeted, with a liquidation amount of up to $628 million across the network within 24 hours, affecting over 130,000 investors who were forced to close their positions. Among them, a long position worth $12.49 million was forcibly liquidated at the price of $109,892, attracting significant market attention. On-chain data indicates that this crash is related to sudden movements from an ancient whale address that had been inactive for seven years, which prominently exchanged some BTC for ETH, leading to a chain reaction in market liquidity.
The actions of ancient whales have always been the focus of market attention, with their every move regarded as an important trend signal. These addresses hold a significant amount of early BTC, and their behavior can directly impact the supply and demand dynamics of the market, amplifying through on-chain data to affect market sentiment. This incident not only shows the whale's recognition of the future potential of Ethereum but also reveals the vulnerability of the market under high leverage conditions, with massive risk exposure for investors.
The liquidation event also serves as a reminder to investors that using leverage tools must be approached with caution. The current market leverage ratio remains relatively high, and sudden events can easily trigger extreme volatility. In addition, on-chain data analysis has become a key risk monitoring tool, helping to capture market anomalies in advance by tracking whale movements and exchange fund flows in real-time. Investors should combine on-chain and fundamental analysis to cautiously formulate investment strategies and avoid blindly chasing short-term profits.
