Bitcoin News Today: Crypto's House of Cards Crumbles as Leverage-Driven Liquidation Wave Hits $217M

A prominent Bitcoin whale known for an unblemished trading record has suffered its first major setback, liquidating a $250 million long BTC position at a $12.68 million loss over 24 hours, according to a Lookonchain report. This marks a dramatic reversal for the "100% Win Rate Whale," which previously gained notoriety for accumulating leveraged positions in Ethereum and other altcoins with near-perfect accuracy, as detailed in a Bitget article.

The liquidation occurred amid a broader market downturn that saw over $217 million in crypto positions wiped out globally within a single day, driven by cascading margin calls and leveraged trading losses, according to an Economic Times article. Bitcoin fell below $113,000 during the selloff, while Ethereum dropped below $4,000 as automated liquidation systems amplified downward pressure. The whale's 13x leveraged BTC position, initially valued at $2.5 billion, became untenable as prices dipped below critical support levels.

The market turbulence coincided with shifting geopolitical dynamics. U.S.-China trade tensions, which had previously triggered a $19 billion crypto liquidation in October, eased after President Trump confirmed plans to meet with Chinese President Xi Jinping in South Korea, a development noted in a Crypto.news report. Meanwhile, Trump's recent pardon of Binance founder Changpeng Zhao and his pledge to make the U.S. "the crypto capital of the world" bolstered investor sentiment; that article also highlights these political moves. However, these positive developments were offset by macroeconomic headwinds, including a 97.8% probability of a 25-basis-point Federal Reserve rate cut in October, which typically pressures risk assets, according to the Lookonchain report.

The "100% Win Rate Whale" is not the only large player navigating volatile conditions. Another whale, identified by the address "0xc2a," recently added 1,242 ETH to its leveraged long position, increasing its total exposure to $366 million, as noted in the Bitget article. Conversely, the "Steady as a Rock" whale, which maintained a 40x leveraged BTC position for 10 days, continues to hold despite a 140% floating loss, demonstrating the high-stakes nature of leveraged trading, the Lookonchain report shows.

The liquidation event highlights the fragility of leveraged positions in crypto markets. Approximately $167 million in long positions and $50 million in shorts were wiped out during the 24-hour period, with Bitcoin and Ethereum accounting for the bulk of losses, the Economic Times article reports. Analysts attribute the collapse to over-leveraged bets and rapid price swings, which triggered a self-reinforcing cycle of forced sales. "This is a classic liquidation cascade," said one market watcher, noting that automated systems exacerbated the downturn.

Despite the losses, some analysts see potential for a market reset. The liquidation of weak positions could pave the way for a more sustainable rally, particularly if institutional buying resumes. Bitcoin's dominance at 47.8% of the total crypto market cap remains stable, while Ethereum's 19.3% share reflects ongoing demand from DeFi and staking activity, the Economic Times article adds.