The newly created wallet has a bet of $54.5 million on Bitcoin. He used 20x leverage to trade through high lipids. The move sparked speculation about the potential impact of Bitcoin in the direction of price.
Whale opens a leveraged position of $54.5 million
On June 9, on-chain data revealed that Wallet 0x1F25 deposited $10 million in USDC on high lipids, a decentralized permanent exchange. The wallet then opened a leveraged long Bitcoin position of 20 times the value of $54.5 million, equivalent to 511.5 BTC.
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Blockchain tracker LookonChain first reported the activity. The wallet does not have any prior transaction history and suggests that it was created for this transaction solely. The liquidation price for the wallet location is $88,141. Based on this, the transaction took place when Bitcoin was traded for $106,538.
Look closely at high risk positions
At this reporting time, Bitcoin is trading at $107,459, so the whale bet is a profit of $861,828. However, with 20x leverage, the position is subject to rapid liquidation if the price moves at a disadvantage to just 5%.
In particular, the whale’s identity remains unknown. However, immediate deposits and transactions via new wallet points are points to strategic intent. Traders and analysts suggest that the move may be based on bullish expectations for Bitcoin’s short-term performance.
Can this trigger more Bitcoin rally?
Large-scale leveraged transactions often send signals to retail investors and institutional players. If the whale’s position proves correct, Bitcoin can continue its upward momentum and test its new all-time highs.
Analyst Michael Van de Poppe noted that Bitcoin is showing strength as it surpasses the previously highlighted $106,500 level. He expects acceleration if Bitcoin exceeds the key support levels due to increased activity for day traders and closure of short positions.
According to him, the move to $108,900 could lead to even faster profits. He sees this as a strong start to this week and is building bullish momentum.
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Meanwhile, analyst Ali Martinez suggested that Bitcoin could reach $110,000. He also cited breakouts above significant resistance levels as factors that influence bullish perspectives.
Essentially, the bullish technology formation on the Bitcoin chart could be affecting whales that have opened a 20x leveraged position in Bitcoin.
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