A significant Bitcoin investor has liquidated a large leveraged position as the price of BTC approached the $90,000 threshold.
As reported by blockchain analytics company Lookonchain, a whale wallet known as 0xFB78 has completely closed its long positions in Bitcoin. The trader exited with 3,846 BTC, which is valued at around $350.4 million, resulting in losses exceeding $3.5 million.
This liquidation coincided with a sharp decline in Bitcoin’s price during the day, heightening risks associated with short-term leverage.
High-Stakes Bets Lead to Liquidation
Prior to this downturn, data from Lookonchain indicated that the same wallet held long positions totaling 2,830 BTC worth approximately $259.55 million. The trader subsequently increased their exposure by adding an extra $20 million in USDC into Hyperliquid to bolster their position.
Despite this additional collateral injection, unrealized losses had already surpassed $2 million—rendering the trade extremely susceptible as market conditions worsened and ultimately leading to the complete closure of the position during the price drop.
Overall Market Weakness Sets Context
The whale’s liquidation occurred against a backdrop of broader market weakness. On Thursday alone, global cryptocurrency markets experienced a 2% decline as traders took profits on recent gains.
This led total market capitalization to fall from $3.27 trillion on Wednesday down to nearly $3.2 trillion within just one day.
The performance of major assets reflected this general sell-off trend; at present writing time, Bitcoin was trading around $90,077—a decrease of 2.8% over the last 24 hours—while Ethereum fell nearly 3.7%, dipping below support at $3,200 level. Other prominent tokens such as XRP and BNB also recorded losses ranging between 2% and 5% respectively.
This pullback follows an impressive rally earlier this month when between January 1st and January 7th total crypto markets surged over by more than eight percent overall.
Bitcoin spearheaded this upward movement with an increase of about eight point five percent that saw it briefly exceed prices above ninety-four thousand four hundred dollars on January sixth; momentum also benefited altcoins like Dogecoin (DOGE), Pump.fun (PUMP), and Shiba Inu (SHIB) which all enjoyed double-digit gains during that period too!
However despite these advances bitcoin struggled maintaining higher levels due largely due repeated failures breaking through resistance set around ninety-four thousand five hundred dollars—an area where gains were capped back December fueling doubts regarding sustainability for ongoing rallies ahead!
ETF Withdrawals Impact Institutional Sentiment
The pressure exerted on institutional flows has further impacted overall market sentiment negatively too! Data compiled from SoSoValue indicates spot bitcoin ETFs have seen net outflows nearing seven hundred thirty-million dollars across just two days recently!
Slightly reversing course Ethereum ETFs posted net outflows amounting ninety-eight point forty-five-million dollars last Wednesday snapping three-day inflow streaks while Solana ETF followed suit recording forty-point-eight-million dollar withdrawals after six consecutive days seeing inflows previously!
This shift towards negative sentiment is mirrored within Crypto Fear & Greed Index falling six points within twenty-four hours moving back into neutral territory after hitting multi-week highs reaching forty-nine earlier recently!
Miner Selling Contributes To Downward Pressure
Additonal pressures arise stemming directly from mining sectors themselves U.S.-based miner Riot Platforms reportedly sold off more than eighteen-hundred bitcoins valued roughly one hundred sixty-one point six millions citing operational necessities driving decisions behind sales made here!
Larger scale sell-offs can amplify volatility especially amidst periods characterized thinning liquidity coupled heightened uncertainties surrounding current situations faced today throughout industry landscape itself! </P