A crypto whale holding a $26.47 million position in Wrapped Bitcoin (WBTC) narrowly avoided liquidation last week. The incident occurred as Bitcoin’s price dropped to $52,550 on September 6, according to data from on-chain tracker Lookonchain.
Liquidation Danger
Lookonchain reported that the whale held 488.45 WBTC on the Compound platform, with a health ratio of 1.07 and a liquidation price set at $50,429. Notably, this whale was previously liquidated three times during the 2022 market downturn, losing a total of 74,426 cWBTC, equivalent to $32.82 million.
Sales and Purchases
Lookonchain also noted that several addresses sold Bitcoin as its price declined last week. For instance, a wallet starting with 3ExiBLw sold 100 BTC for $5.35 million, making a profit of $206,000. Conversely, data from analytics firm IntoTheBlock revealed that approximately 836,000 addresses purchased around 402,800 BTC, valued at $21 billion, in the price range of $51,113 to $54,303.
Key Insights
– The whale’s liquidation price was $50,429, narrowly avoided at Bitcoin’s dip to $52,550. – The whale previously faced three liquidations in 2022, totaling $32.82 million in losses. – Some investors sold Bitcoin during the price drop, while many others bought significant quantities. – Galaxy Digital moved over $78 million worth of Bitcoin to Coinbase Prime, possibly for security or sale.
These data points are crucial for understanding the actions of major players in the crypto market and the associated market dynamics. Particularly, the risk of liquidation and strategies of large investors can significantly influence market movements.
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