Mysterious Whale Bets $31M on Chainlink, Influencing Market Sentiment

A mysterious cryptocurrency trader, known for their ultra-leveraged position in Ether (ETH), has made a significant move by taking a multimillion-dollar position in Chainlink (LINK). On March 14, this anonymous whale, referred to as “ETH 50x Big Guy,” opened long positions in LINK worth approximately $31 million with 10 times leverage. This move was executed on two popular perpetuals exchanges, Hyperliquid and GMX, according to onchain data from Lookonchain, a Web3 analytics service. Additionally, the whale accumulated roughly $12 million in spot LINK.

In the hours following the initial investment, the whale gradually reduced their LINK holdings through small swaps back into stablecoins. This strategic maneuver suggests a calculated approach to managing risk and potentially locking in profits. The whale's actions highlight the dynamic nature of the cryptocurrency market, where large players can significantly influence asset prices and market sentiment.

This recent activity by the whale comes on the heels of a previous high-stakes trade on March 12, where the trader intentionally liquidated a roughly $200 million ETH long position. This move caused Hyperliquid’s liquidity pool, HLP, to lose $4 million, while the trader’s profits topped roughly $1.8 million. The incident underscored the challenges faced by perpetual trading platforms, which allow traders to take positions many times larger than their deposited capital. Hyperliquid responded to the losses by announcing revised collateral rules for traders with open positions to guard against similar edge cases in the future.

Hyperliquid, launched in 2024, has quickly captured a significant market share, surpassing rivals such as GMX and dYdX. The platform's ability to attract high-leverage trades and large investors underscores its growing influence in the decentralized finance (DeFi) space. The whale's decision to bet on LINK, a decentralized oracle service, indicates a strong bullish sentiment towards the cryptocurrency. LINK has seen significant price fluctuations in recent months, with its value increasing by more than 150% in the weeks following a major political event, before declining to less than $14 per token as of March 14.

The whale's investment in LINK is noteworthy, as it comes at a time when the cryptocurrency market is experiencing increased volatility and uncertainty. The whale's previous investments in Bitcoin and Ethereum have proven to be profitable, and its decision to bet on LINK suggests a belief in the cryptocurrency's potential for growth. The whale's actions are likely to have a significant impact on LINK's price in the coming weeks and months, as large investors often set the tone for market trends. The cryptocurrency community will be closely watching the whale's next moves, as their high-risk, high-reward strategy continues to draw attention and influence market sentiment.