Whales’ activity in the cryptocurrency markets never ceases to amaze, particularly when they earn big profits or experience massive liquidation risks. Today, crypto analyst Onchain Lens spotted a whale that is at risk of getting liquidated 488.49 WBTC worth $46.99 million on Compound.
Liquidation risk
As per metrics reported by Onchain Lens, the investor’s health rate decreased to 1.02 and the liquidation price is scheduled at $91,785.
According to data, this is not the first time the wallet address associated with this whale encountered this problem. During that famous crypto crash that occurred in 2022, this address was liquidated on three occasions, losing an aggregate of 74,426 WBTC worth $32.82 million.
This prominent Bitcoin whale is on the verge of facing liquidation risk because of the ongoing decrease in BTC prices. The investor deposited 488.49 BTC on Compound and borrowed $46.99 million in WBTC. If Bitcoin’s prices fall below $91,785, Compound will liquidate the investor’s long positions.
Currently, Bitcoin price is exchanging hands at $96,123.24, a decrease of 1.4% from $97,888.75 recorded on Feb.13, 2025. The asset’s price drop from the $100k level since Feb.4, 2025, has triggered fears about multiple investors’ potential liquidations.
While the use of leverage can immensely expand potential gains, it can easily increase huge losses. Today, Bitcoin’s price decrease sent shockwaves to investors about potential liquidation threats over their leveraged funds.
This whale is not the only one at risk. Other big investors are also impacted. According to Coinglass data today, multiple addresses liquidated more than $22.64 million in Bitcoin over the past 24 hours as BTC prices dropped.
Bitcoin price updates
Today, the broader cryptocurrency market witnessed substantial activity among savvy investors amid BTC prices fall. The potential liquidation risks facing multiple big crypto holders could cause significant impacts on the market.
If Bitcoin’s price drops to the critical $95,200 support zone, it could cause greater sell-offs. Indeed this could worsen further downward momentum and cause more liquidations.
The current selling pressure on BTC is impacting the overall investor sentiment on the broader market. As big investors liquidate their BTC tokens, this triggers a further downward trend in the entire market, including altcoins.
However, the whale’s liquidation threat highlights the vulnerability of highly leveraged positions. This situation points out the significance of proper risk management in unstable markets like cryptocurrency.
