Major Movements in the Spot Market
The spot market has recorded several notable transactions that indicate increased caution among certain whales. An Ethereum trader who purchased 6,028 ETH during the October 11 crash at $3,638 per coin has liquidated their entire position during the rebound. They sold for $22.26 million in USDC at an average price of $3,587, taking a loss of $320,000.
This decision reveals a defensive approach amid market uncertainty. Rather than maintaining a position hoping for a stronger rebound, this trader preferred to limit losses and preserve capital. This behavior suggests that not all large holders share a bullish outlook in the short term.
Owen Gunden, an early Bitcoin investor, has also significantly reduced his exposure. He transferred 500 BTC to Kraken on Saturday, worth $51.68 million, then an additional 600 BTC the following day for $61.17 million. Despite these massive outflows, he still holds 6,050 BTC valued at $618.78 million, indicating a strategy of partial profit-taking rather than a complete exit.
While some were reducing their positions, others were quietly accumulating. Two new wallets withdrew approximately $2.9 million in LINK from Binance over three days, totaling 187,500 tokens at an average price of $15.5. This fresh accumulation of Chainlink reveals confidence in the asset’s potential during the recovery phase.
The Derivatives Market: A Battlefield of Massive Liquidations by whales
Leveraged trading has transformed the crypto rebound into a true battlefield for whales. Bitcoin short positions have particularly suffered, generating cascading liquidations. James Wynn first closed a 40x short position with a profit of $85,380, before suffering twelve successive liquidations, reducing his account to just $6,010. Another trader on Hyperliquid lost $6.44 million after transferring $7 million in USDC to short Bitcoin, illustrating the risks of high leverage during sharp market movements.
These massive liquidations created a domino effect, amplifying volatility. Each liquidation forces the automatic closure of positions, generating buy orders that fuel the bullish movement and trap even more shorts. This mechanism partly explains the speed and intensity of the observed rebound.
Conversely, some whales have taken advantage of the volatility to flip to long positions. The Anti-CZ Whale converted his Ethereum shorts to long positions, accumulating more than $15 million in unrealized gains, while Brother Machi multiplied his ETH long position by 25, demonstrating bullish confidence. On Zcash, the whale 0x6EF9 closed its long position with a profit of $1.25 million, and a new wallet invested $3.54 million in USDC on Hyperliquid for ZEC, anticipating a continuation of the bullish movement.
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