A recent $45 million bet on Bitcoin has sparked significant interest in the cryptocurrency circles. This article explores the impact of this trade on the market and its trading dynamics.
Whale's Strategy on Bitcoin
A cryptocurrency investor opened a $45 million position with 40x leverage, setting a liquidation line at $105,000. If Bitcoin reaches $125,000, it will trigger approximately $5.6 billion in short liquidations, most concentrated around $121,000.
Selloff Dynamics on Binance
On August 1, Binance's net taker volume sharply declined, dropping to -$1.5 billion. This metric indicates that sellers were in full control of the market. Following the liquidation of long positions around $114,000, a significant wave of sales occurred, reflecting the activation of short positions.
Sustained Demand for Bitcoin
Despite market fluctuations, demand indicators have shown positive outcomes. For instance, the difference between newly issued Bitcoin and coins untouched for over a year revealed that around 160,000 BTC were absorbed over the last 30 days. Long-term holders of Bitcoin continue to maintain their positions, indicating an overall positive sentiment within the crypto community.
The whale's bet puts billions of short positions at stake, while data on demand and long-term holders shows that the market remains interested in Bitcoin despite current volatility.
