A trader betting long on both Ethereum (ETH) and Bitcoin (BTC) is under intense scrutiny across the crypto market. This trader, who has been engaging in risky long bets in top cryptocurrencies despite huge volatility, has raised questions about the credibility of his trading moves.
Some crypto enthusiasts are concerned about a potential that the trader could be engaging in money laundering. This is due to the huge leverage associated with the trades. Additionally, the near-perfect timing of the trades have raised concerns about whether the trader is using insider info for these trades.
$5.22M High-risk Long Bets on BTC & ETH Flagged; Details
The crypto community is currently analyzing suspicious trading activities by one whale. As reported by Spotonchain, a blockchain analytical platform, this whale “deposited $5.22M to Hyperliquid to open high-risk long bets on $ETH and $BTC.” While it is normal for whales to engage in trading activities, what has raised questions about this whale is the huge leverage on the trades placed.
https://twitter.com/spotonchain/status/1899732734899360019
This whale with address 0xf3… 057c, bet long on ETH with 50x leverage. Additionally, the trader placed another long bet on BTC with a 20x leverage. For Ethereum, the trader’s entry point was at $1,884.4 with the liquidation level set at $1,838.2.
On the other hand, the entry point for BTC was at $82,003.9. For this trade the whale set liquidation at $61,182. Based on the huge leverage and rather “smart” price levels, the market has speculated that the trades are not just random.
Furthermore, Spotonchain confirmed that this trader has had a perfect win rate in other short trades. “In the past 2 days, this whale closed two quick $ETH long positions with a 100% win rate,” the blockchain analytics platform revealed. From the previous short trades, the trader netted “$2.2M in profit.”
The market is still divided about whether his moves are influenced by insider information or it’s just another money laundering operation in progress. However, nothing is confirmed yet and the crypto community will track the trader’s moves to discern the facts.
Lookonchain Reports Another Chain Of Trades By The Trader
According to a string of posts by Lookonchain, an on-chain data tracker, the whale with address 0xf3… 057c made a streak of long trades on BTC and ETH. In one of the trades, the whale deposited 1.735M $USDC which he used to bet long on BTC. Similar to the initial trades, the trade placed this bet on Hyperliquid.
However, the trader switched up his position on BTC, shifting all the bets on BTC to Ethereum (ETH). The entry price for the switch up trade was made at the $1,900.2 price level and liquidation at $1,877. As of the time of reporting by Lookonchain, the trader had an unrealized profit of $2.92M as his ETH long position reached 140,458 $ETH. This was worth approximately $269.8 Million as of price at the time.
However, the whale did not stop there as he proceeded to make yet another deposit of 10 Million $USDC into Hyperliquid. The purpose of this deposit was to “place a limited order at $1921” on ETH. This whale made an entry at $1,900.28 price level and set liquidation at $1,805. The long ETH position rose to 141,013 $ETH worth $271.6M and the trader had $3.65M in unrealized profits, as of the time of the report.
This whale made a total of 15.23 Million USDC to Hyperliquid after which he withdrew 17.09 Million USDC making a profit of 1.86 Million USDC, as per the data on Arkham Intelligence.
Trader’s Profit-Taking Sparked Withdrawal By 8 More Whales
After the whale made the 17.09 million USDC withdrawal, the move sparked a move by other whales. Data on Arbiscan shows that 8 more whales on Hyperliquid made withdrawals following the whale’s move.
The withdrawal by these whales totaled to 14.35M $USDC. In a comment about the withdrawal by the eight whales, Alva (an AI crypto analytics platform) stated that “liquidity hit could tighten trading and spark bearish vibes.” Alva further advised market participants to “stay sharp and reassess [their] positions” since the profit-taking by whales signifies a “cautious outlook.”
Data on Coinmarketcap shows that Ethereum is trading at $1,905.93. Additionally, BTC is trading at $83,368.22 with both coins showing a price recovery.
Ethereum has recorded 1.33% gain today but price still stays below $2,000. Bitcoin has recorded 2.68% gain managing to reclaim the $83K. A recovery of the recent losses could be setting in in the crypto market. But traders should be cautious and avoid greed despite profit-taking by whales.
