Bitcoin News Today: Crypto's Liquidation Frenzy: Whales Capsize, Bulls Press On

The crypto market is experiencing a wave of liquidations as Bitcoin and Ethereum prices swing sharply lower, with high-profile traders like Machi Big Brother suffering significant losses. Over $1.2 billion in long positions were liquidated in 24 hours, according to Coinglass data cited in an FXStreet report. Bitcoin (BTC) and Ethereum (ETH) both dropped by 3% in under an hour, triggering cascading margin calls across decentralized exchanges. The largest single liquidation, valued at $33.9 million, occurred on HTX.

Machi Big Brother, a well-known crypto whale and former DeFi founder, faced a partial liquidation of his Ethereum long position on Hyperliquid, marking a fresh $15 million loss. Despite this, the trader added $262,500 in USDC to bolster his 3,000 ETH position, now valued at $9.81 million, with a liquidation price of $3,199.31. His aggressive leveraged trading has made him a focal point for on-chain analysts, who track his moves as barometers of market sentiment.

The volatility has also impacted other notable players. A trader known as 0xc2a3, previously celebrated for a 100% win rate, saw profits flip to a $17.6 million loss on Hyperliquid. Meanwhile, the "1011 Insider Whale" added $20.34 million in long positions, though it now faces an unrealized loss of $1.86 million, according to an oDaily report. These moves highlight the precarious balance between bullish optimism and leveraged risk in a market still reeling from October's $20 billion liquidation event.

The Coinbase Bitcoin Premium Index, which reflects the price gap between Coinbase and global exchanges, hovered near -$30 during the selloff, indicating heavy selling pressure in the U.S. market. This follows a broader trend of institutional and retail traders adjusting positions amid uncertainty about macroeconomic conditions and regulatory developments.

Despite the turbulence, some traders are accumulating. A Bitcoin "OG," referencing a veteran investor, opened $37 million in BTC and $18 million in ETH long positions on Hyperliquid after the price dip. This contrasts with the "1011short" address, which deposited $20 million in USDC to expand its longs, holding 600 BTC and 13,000 ETH at entry prices of $104,785 and $3,444, respectively, according to a Panewslab report.

The liquidation frenzy has raised concerns about market stability. Over $50 million in margin calls occurred in four hours, primarily targeting short positions, oDaily reported, while Ethereum's price fell 10% as altcoins like Solana (SOL) and XRP also declined. Analysts warn that leveraged traders remain vulnerable to further swings, with Bitcoin's 24-hour price hovering near $107,000—a far cry from the $108,000 peak seen earlier in the week.