The Ingenious Strategy of the Bitcoin (BTC) Whale: The Beginning of a Price Spike?

Jakarta, Pintu News – On March 16, a $520 million Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- short position taken by a whale on Hyperliquid (HYPE) with 40x leverage caught the market’s attention.

This position, which had a liquidation price of $85,561, only required a 1.75% increase in Bitcoin (BTC) price from its entry price of $83,898 to be liquidated. This incident sparked speculation that a bigger strategy might be at play for the whale.

Check out the full news below!

Big Short Position as a Trigger?

Analysis from 10x Research released on March 17 suggests that this may not simply be a trading error from the whale. Some analysts believe this large short position may have been deliberately set up to lure other traders into pushing the price of Bitcoin (BTC) up.

This strategy is known as “self-liquidation,” where traders deliberately set up their positions to be liquidated in favor of a larger price increase. A trader named Cbb0fe used the X platform to attract other traders and drive up the price of Bitcoin (BTC).

Bitcoin (BTC) price surged 2.5% within minutes, almost reaching the whale’s liquidation threshold before they added funds to increase their liquidation price.

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Democratizing Stop-Loss Hunting

This event marks a new trend in the crypto trading world, where not only large institutions, but also independent traders are taking advantage of the transparency of leveraged trading on decentralized exchanges (DEXs) to coordinate in influencing the market.

Markus Thielen of 10x Research emphasizes that this is an example of the democratization of stop-loss hunting, where small market participants now have the power to significantly influence the market.

The ability to publicly view leveraged positions on the DEX allows independent traders to collaborate and counter large positions that large entities may perceive as market manipulation. This opens up a new era of more inclusive and transparent trading strategies.

Read also: MicroStrategy Prepares Another $500 Million to Buy Bitcoin!

Market Reaction and Implications

Hyperliquid (HYPE) has responded by lowering the leverage limits for Bitcoin (BTC) and Ethereum ETH->Current ETH PriceRp 0Market Cap-Trading Volume-Circulating Supply- after a similar incident last week involving $285 million worth of Ethereum (ETH) bets. This incident shows not only the volatility of the market but also the risks involved in high-leverage trading.

The crypto community is now closely watching Bitcoin’s (BTC) price movements. If the whale’s short positions are liquidated, it could trigger further price spikes. This situation shows how complex and risky the high-stakes game is in the crypto market right now.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. 520m Bitcoin Short 40x Leverage Hyperliquid Setup 2025. Accessed on March 19, 2025
• Featured Image: Generated by AI