A crypto whale with a $26.47 million position in Wrapped Bitcoin (WBTC) is closing in after narrowly escaping liquidation last Friday.
According to on-chain data tracker Lookonchain, a deep-rooted whale with an Ethereum (ETH) address starting with Oxceef was about to be liquidated on decentralized finance (DeFi) platform Compound after Bitcoin fell to a low of $52,550 on September 6.
WBTC is an ERC-20 token that is backed 1:1 by Bitcoin. It allows holders to use the token as collateral for financial transactions in the Ethereum ecosystem.
Say Look at chain,
“A whale faces potential liquidations of 488.45 WBTC ($26.47 million) on Compound, with a health rate of only 1.07 and a liquidation price of $50,429.
This whale was liquidated three times during the 2022 price crash, liquidating a total of 74,426 cWBTC ($32.82 million).”
The company too spotted other addresses that sold Bitcoin when BTC fell in price late last week. According to the company, an address starting with 3ExiBLw sold 100 BTC worth $5.35 million for a profit of $206,000 once Bitcoin’s price fell close to the entity’s breakeven point.
On the other hand, Lookonchain cites data from analytics firm IntoTheBlock showing that 836,000 addresses bought approximately 402,800 BTC worth $21 billion between $51,113 and $54,303.
However, the blockchain tracker warns that these addresses could lose their assets at break-even prices.
Also take a look at Chain spotted crypto firm Galaxy Digital deposits 1,458 BTC worth more than $78 million into Coinbase Prime. Since Coinbase Prime offers trading and custody services, Galaxy Digital could have sent the BTC stack for safekeeping or to be sold on the open market.
At the time of writing, Bitcoin is trading at $54,987.
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Generated image: DALLE3
Credit : dailyhodl.com
