Crypto News

Bitcoin And Ethereum Plummet As Whales Face Liquidation Amidst Market Downturn

Bitcoin fell below $56,000 in the last 24 hours, marking a 5.87% drop, while Ethereum (ETH) plummeted below $3,000, suffering a 9.96% decline.

The entire crypto market saw a massive liquidation of $576 million, with long orders accounting for $499 million of this total.

One trader faced liquidation of 4,215 ETH, worth $12.2 million, and has since begun repaying the debt. As the price of ETH continues to drop, more whales are on the brink of liquidation for ETH deposited in Aave and Compound.

More Whales Make ETH Deposits To Sell Off

In the past two hours, three whales deposited a combined 28,558 ETH, valued at $82.2 million, to Binance and sold it to repay their debts. One whale, in particular, sold 26,600 ETH, worth $82.5 million, at a price of $3,102 to repay debt on Aave, causing the price of ETH to drop by 3.4%.

Following this, the same whale created a new wallet and borrowed $80.9 million USDT from Aave to buy 26,235 ETH at a lower price of $3,084. His current health rate stands at 1.9, with a liquidation price set at $1,625.

This rapid selling and subsequent buying by large holders indicate significant market movements and strategic debt management amidst the ongoing market downturn. The heavy liquidations and price drops underline the volatility and risk inherent in the crypto market, especially for leveraged positions.

Investors should exercise caution during these turbulent times, as further liquidations could lead to additional price declines and market instability. The actions of whales and major holders will continue to play a critical role in the market’s direction in the coming days.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: alekskhmelev/123RF // Image Effects by Colorcinch

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