Crypto’s Most Watched Whale Gets Fully Liquidated After Placing Billions in Risky Bets.

May 31, 2025

In a dramatic turn of events, one of the cryptocurrency market’s most closely watched whales has been fully liquidated after placing billions in high-risk leveraged bets. The trader’s aggressive positions, primarily in Bitcoin and Ethereum, were wiped out amid a sharp market downturn triggered by escalating U.S.-China trade tensions.

The Whale’s Risky Strategy

The unidentified whale had amassed substantial positions using significant leverage. Reports indicate that the trader opened a 50x leveraged long position in Ethereum, totaling over 160,000 ETH, valued at approximately $308 million at the time. This position was liquidated when the price of ETH fell below the liquidation threshold of $1,877 .

Additionally, the whale had converted all of their Bitcoin holdings into a leveraged long position in Ethereum, further amplifying the risk. The entry price for this position was around $1,900, with a liquidation price set at $1,877 .

Market Impact

The liquidation of such a large position sent shockwaves through the cryptocurrency market, contributing to a significant price decline. Bitcoin dropped below the $104,000 mark, and Ethereum experienced a sharp downturn, reflecting the broader market’s sensitivity to large-scale liquidations.

Analysts note that the whale’s aggressive use of leverage, combined with the market’s volatility, created a precarious situation. The liquidation not only resulted in substantial financial losses but also highlighted the risks associated with high-leverage trading in the cryptocurrency market.

Lessons Learned

This incident serves as a cautionary tale for traders in the cryptocurrency space. While leverage can amplify gains, it also increases the potential for significant losses, especially in a volatile market. Traders are advised to exercise caution and consider the risks carefully when engaging in leveraged positions.

As the market stabilizes, the focus will shift to understanding the broader implications of such large-scale liquidations and how they may influence future trading strategies and market regulations.