Bitcoin Updates: Crypto Market Faces Collapse as $217M in Leveraged Positions Are Liquidated

A well-known

whale, previously recognized for an impeccable trading history, has experienced its first significant loss, closing out a $250 million long BTC position with a $12.68 million deficit in just 24 hours, as reported by . This event represents a sharp turnaround for the so-called "100% Win Rate Whale," who had earlier gained attention for accurately timing leveraged trades in and other alternative coins, according to .

This forced liquidation took place during a widespread market decline, which erased more than $217 million in crypto positions worldwide in a single day, fueled by a chain reaction of margin calls and leveraged losses, as detailed in

. Bitcoin's value dropped below $113,000 amid the selloff, while Ethereum slipped under $4,000, with automated liquidation mechanisms intensifying the downward momentum. The whale's BTC position, leveraged 13 times and originally worth $2.5 billion, became unsustainable as prices fell beneath key support thresholds.

This period of market instability coincided with evolving global political developments. Tensions between the U.S. and China, which had previously led to a $19 billion crypto selloff in October, eased after President Trump announced a meeting with Chinese President Xi Jinping in South Korea, as mentioned in

. Additionally, Trump's recent pardon of Binance founder Changpeng Zhao and his promise to establish the U.S. as "the crypto capital of the world" lifted investor confidence, as highlighted in the same article. Nevertheless, these positive signals were counterbalanced by broader economic concerns, including a 97.8% likelihood of a 25-basis-point rate cut by the Federal Reserve in October, which often weighs on riskier assets, according to Lookonchain.

The "100% Win Rate Whale" is not alone in facing turbulent markets. Another major holder, known by the address "0xc2a," recently increased its leveraged long position by acquiring 1,242 ETH, bringing its total exposure to $366 million, as reported by Bitget. In contrast, the "Steady as a Rock" whale, who has held a 40x leveraged BTC position for ten days, remains in the trade despite a 140% unrealized loss, illustrating the high-risk environment of leveraged crypto trading, according to Lookonchain.

This wave of liquidations underscores the vulnerability of leveraged positions in the cryptocurrency sector. Around $167 million in long trades and $50 million in shorts were eliminated within 24 hours, with Bitcoin and Ethereum accounting for most of the losses, as per the Economic Times. Experts attribute the rapid decline to excessive leverage and sharp price movements, which set off a chain of forced liquidations. "This is a textbook example of a liquidation cascade," one analyst observed, noting that automated trading systems intensified the selloff.

Despite recent setbacks, some market observers believe this could set the stage for a healthier rebound. Clearing out weaker positions may allow for a more stable upward trend, especially if institutional investors return. Bitcoin continues to command 47.8% of the total crypto market capitalization, while Ethereum holds a 19.3% share, reflecting persistent interest from DeFi and staking activities, according to the Economic Times.