Whale Longs $4.06 Million BTC with 20x Leverage, Now Holds $589,000 Profit

Today, a dormant crypto whale attracted market attention by selling huge amounts of Ethereum worth $4 million and opening a long position on Bitcoin.

A wallet sold 1,863 $ETH for 4.06M $USDC at $2,181 after being dormant for 2 years.

Then the whale deposited 4.06M $USDC to #Hyperliquid to long $BTC at $89,930 with 20 leverage, with an unrealized profit of $589K and a liquidation price of $75,186.

Address:… pic.twitter.com/gvdhLOdaWF

— Lookonchain (@lookonchain) March 6, 2025

Whale longs Bitcoin

According to data from Lookonchain, the whale, which has been dormant for two years, reawakened today and sold 1,863 Ethereum for $4.06 million USDC.

The whale then deposited $4.06 million USDC to Hyperliquid to long Bitcoin at $89,930 with 20 leverage. He currently holds an unrealized profit of $589,000, with a liquidation price of $75,186.

With such a high leverage, this trade could make this savvy investor rich or leave him with huge losses. If the market moves in his favor, he could earn potential gigantic profits. However, a price dip below could trigger liquidation.

This investor’s strategy is clear – bet big on Bitcoin’s upswing while using leverage to intensify gains. At current market prices, this whale is already sitting on unrealized returns. But with liquidation level at $75,186, a significant downturn could erase everything in minutes.

Leverage trading is a double-edged weapon – it amplifies both returns and losses. At 20x leverage, a price fall below $75,186 could lead to total liquidation.

If Bitcoin continues its upward movement, this whale could earn thousands of dollars in just short time. On the other hand, a price drop could send this high profit gamble into complete losses, wiping out the entire $4.06 million deposit.

Lessons to learn

The digital asset is extremely volatile. Leverage traders normally depend on support and resistance levels to guide their movements.

Bitcoin at $89,930 is a significant zone. If the BTC price holds above this zone, the trader could be in for big profits. But if the market falls below the crucial support level of $82,250, the trader is at a high risk of facing liquidation.

This whale’s case is an illustration of a high-risk, high-reward trading. While the trader sits on massive profits, potential market falls could cause liquidation of his deposits.

Only time will tell to see if the BTC market could continue upside and turn the investor’s trade into profit or fall and erase everything.

The whale’s bet coincides with Trump’s policy changes, which he believes could support the market movements.

Although President Trump recently introduced heavy taxes on Chinese, Mexican, and Canadian imports, he followed it with launchings favourable crypto announcements. Early this week, Trump signed an executive order to establish a US crypto stockpile. He also announced a White House crypto summit, which scheduled on March 7. The whale appears to capitalize on these favourable regulator’s events, hoping to bolster movement of crypto prices.

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