Crypto Market Dynamics

Rival crypto whales, including CBB and Justin Sun, have attempted to increase BTC’s price.
A surprising $2.4M long on MELANIA suggests hedging or psychological tactics.

The Hyperliquid [HYPE] whale, known as the “ETH 50x Big Guy,” is at the center of significant market activity after opening a $449 million short position on Bitcoin [BTC].

This high-stakes trade, executed with 40x leverage, had an entry price of $83,923. If Bitcoin’s price rises above $85,940, their position will be forcibly liquidated, potentially causing a cascade of short squeezes.

As of this time, Bitcoin was trading at $83,451, meaning the whale’s position remained intact, showing an unrealized profit of $4.4 million.

Hyperliquid Crypto Whale Avoids Liquidation

In response to this enormous short position, influential traders, including CBB (@Cbb0fe) and Justin Sun, have sought to push Bitcoin’s price higher to force the whale into liquidation.

The first major attempt occurred on March 16, when Bitcoin briefly surged to $84,690, nearing liquidation.
However, 0xf3F4 promptly deposited $5 million USDC, bolstering their margin and sustaining their trade.

“The ETH 50x Big Guy” Takes a Bold Bet

0xf3F4 has employed various strategies to dodge liquidation, with collateral management playing a crucial role. They have continued to add margin whenever the price approaches their liquidation threshold.

This maneuver has allowed them to maintain their position amidst looming pressure from rival traders. They have also utilized TWAP (Time-Weighted Average Price) trading, gradually exiting in smaller portions to mitigate market impacts while securing profits.

Holding influence over Hyperliquid’s order books has been another advantage. They are believed to have set a $150 million sell wall between $83,920 and $83,925, inhibiting Bitcoin’s price from surpassing resistance.
Simultaneously, they positioned $106 million in buy orders at $68,774-$68,775 to create a profit-taking zone if Bitcoin decreases.

To further sway market sentiment, 0xf3F4 executed psychological tactics.
They altered their display name to “Tether FUD” to spread fear and uncertainty, possibly convincing other traders to sell, aligning with their short position.

Can Traders Force a Short Squeeze?

The market response has been intense. CBB publicly announced their intention to drive down 0xf3F4 by pushing Bitcoin’s price upward.
They rallied other traders and reported having secured “8-figures” in funds for this campaign.
Justin Sun, TRON’s founder, also engaged in discussions with CBB, showing interest in contributing capital against the whale’s position.

Despite these efforts, Bitcoin has not yet surpassed $85,940, and 0xf3F4 still controls their trade.
Interestingly, 0xf3F4 unexpectedly opened a $2.4 million long position on MELANIA tokens.

An Unexpected Twist

The motivation behind this trade remains unclear, but analysts speculate it may serve multiple purposes. One theory suggests the MELANIA long acts as a hedge against Bitcoin’s price rise, while another views it as speculation for potential gains in a short squeeze.

Additionally, it could be a psychological tactic to distract other market participants from their Bitcoin short.
Overall, this maneuver indicates they’re actively managing risks across various assets.

Paying the Price

Maintaining this trade has proven costly. Funding fees have exceeded $391,000, but the whale is willing to absorb these costs to preserve their position.
They have also placed 12 limit buy orders between $58,664 and $69,414, indicating a strategy to take profits if Bitcoin declines further.

This setup implies an expectation of downward movement amidst broader market efforts to elevate BTC’s price.

Win or Lose, This Crypto Whale Will Be Remembered

This scenario exemplifies how a single crypto whale can influence the market.
If 0xf3F4 gets liquidated, it will reinforce the notion that collective action can challenge even well-capitalized traders. Conversely, if they endure, it will showcase the efficacy of risk management in high-leverage trading.

For the moment, the market remains tense, pondering if Bitcoin will ascend and trigger a short squeeze or if the whale will secure millions in profits.