Bitcoin News Today: Bitcoin Whale's House of Cards Collapses in $250M Liquidation

A top Bitcoin whale known as the "100% Win Rate Whale," celebrated for an unbroken streak of profitable trades, has suffered its first major loss in a volatile 24-hour span. The trader liquidated a $250 million long BTC position at a $12.68 million deficit after the cryptocurrency market imploded, according to a Bitget report citing Lookonchain data. This marks a dramatic reversal for a figure previously lauded for precision in timing leveraged trades in Ethereum and altcoins.

The liquidation unfolded amid a $217 million global crypto crash, driven by cascading margin calls and leveraged losses. Bitcoin plummeted below $113,000, while Ethereum fell under $4,000, exacerbating the selloff through automated liquidation mechanisms. The whale's 13x leveraged position, originally valued at $2.5 billion, became untenable as prices breached critical support levels. This event underscores the fragility of leveraged positions in the crypto sector, where rapid price swings can trigger systemic collapses.

Geopolitical dynamics added complexity to the market's turmoil. U.S.-China tensions, which had previously triggered a $19 billion crypto selloff in October, eased after President Trump announced a meeting with Chinese President Xi Jinping in South Korea, per a Crypto.news article. Meanwhile, Trump's recent pardon of Binance founder Changpeng Zhao and his pledge to position the U.S. as "the crypto capital of the world" bolstered investor sentiment. However, these developments were offset by expectations of a 97.8% likelihood of a 25-basis-point Federal Reserve rate cut in October—a move that typically pressures riskier assets, according to Lookonchain.

The "100% Win Rate Whale" is not the only high-profile player navigating turbulent conditions. Another major holder, identified by the address "0xc2a," recently amplified its leveraged ETH exposure by acquiring 1,242 ETH, raising its total position to $366 million. In contrast, the "Steady as a Rock" whale has maintained a 40x leveraged BTC position for ten days despite a 140% unrealized loss, highlighting the high-stakes nature of leveraged trading.

Analysts attribute the rapid liquidations to excessive leverage and sharp price movements, which triggered a cascade of forced exits. "This is a textbook example of a liquidation cascade," one expert noted, emphasizing that automated trading systems amplified the selloff. Over $167 million in long positions and $50 million in shorts were erased within 24 hours, with Bitcoin and Ethereum accounting for most of the losses.

Despite the setbacks, some market observers argue the selloff could pave the way for a healthier rebound. Clearing out weaker positions may stabilize the market, particularly if institutional investors re-enter. Bitcoin retains 47.8% of the total crypto market capitalization, while Ethereum holds 19.3%, reflecting ongoing interest in decentralized finance and staking activities.