Whale opens a 40x long position in bitcoin and draws attention
Bitcoin whale swimming with floating bitcoins (Image by AI/Livecoins)
A bitcoin whale opened a highly leveraged position at 40 times, a move that was detected by the market this Saturday (12).
According to bitcoin historian Pete Rizzo, the new position was opened with 200 million dollars. However, as is common in this market, the identity of the responsible party was not revealed to the general public.
“URGENT: A HUGE WHALE JUST DOUBLED ITS BET ON #BITCOIN WITH A 200 MILLION DOLLAR LONG LEVERAGED POSITION AT 40x.”
The term “whale” in the cryptocurrency market refers to an investor with a large volume of capital, capable of significantly moving the price of an asset like Bitcoin. In other words, the bet on the rise can help other traders trust the current moment.
“Doubled down” means that this investor reinforced or increased their position, betting even more on the asset's rise.
The sentence informs that this whale opened a leveraged long position, that is, an operation betting on the rise of Bitcoin, using a leverage of 40 times on an amount of 200 million dollars.
This means that, even with a much smaller capital than the 200 million, the investor is exposed to a price movement as if they had bet the entire amount. The operation involves high risk but also high potential returns.
This Saturday, it is worth noting that the price of bitcoin has once again surpassed 85 thousand dollars in the market, indicating significant confidence in the short term.
Bitcoin whale recently suffered losses with leveraged positions
As reported by Livecoins, in recent days another unlucky bitcoin whale ended up regretting betting on the market's rise.
This is because, in just 50 days, it ended up being liquidated in the market at least four times, which has become a famous case in recent days of tensions and sideways movement in the price of bitcoin.
In an article shared with the report, Sebastian Serrano, CEO of Ripio, reminds us that despite recent fluctuations, the fundamentals remain intact in bitcoin.
“It is important to remember that the fundamentals of Bitcoin remain intact: security, privacy, and independence from governments, an alternative for transferring value when fiat currencies are penalized by foreign countries and its interoperability with various instruments and global markets. In short, Bitcoin offers answers and opportunities amid uncertainties and risks. In the era of hyper-financialization, markets sometimes get confused, but I have no doubt that the cryptocurrency market will once again prove its ability to empower people and businesses, especially in times of crisis. My outlook remains positive, and I believe that by the end of 2025, we could see a bullish movement for Bitcoin,” says the executive.
