A big-time crypto investor, nicknamed a “whale” in the crypto world, is facing a potential loss of a whopping $26.47 million worth of Wrapped Bitcoin (WBTC) on the Compound platform.
Close Call with Liquidation
This whale, identified by their Ethereum address starting with “Oxceef,” narrowly avoided liquidation last Friday when Bitcoin prices plummeted to $52,550. WBTC, a version of Bitcoin that can be used on the Ethereum blockchain, is held by the whale as collateral for loans on Compound.
Liquidation Risk
The whale’s current situation is precarious. Their “health rate” on Compound is a mere 1.07, meaning they are dangerously close to being liquidated. If Bitcoin drops below $50,429, the whale will lose their entire WBTC position.
History of Liquidation
This isn’t the first time this whale has faced liquidation. They were liquidated three times during the 2022 crypto crash, losing a total of $32.82 million in WBTC.
Other Players in the Market
While this whale is in a precarious position, other players are taking advantage of the recent price dips. One anonymous address sold off $5.35 million worth of Bitcoin for a profit of $206,000.
On the other hand, data from IntoTheBlock shows that 836,000 addresses bought a significant amount of Bitcoin at prices between $51,113 and $54,303. However, it’s important to note that these addresses could sell their holdings at break-even prices, potentially impacting the market.
Galaxy Digital’s Move
Crypto firm Galaxy Digital deposited $78 million worth of Bitcoin into Coinbase Prime, suggesting they might be looking to either secure their holdings or sell them on the open market.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $54,987.
Disclaimer:
This information is for educational purposes only and should not be considered investment advice. Always do your own research before making any investment decisions. /p>
