Profitable Whale Bets Big With 40x Bitcoin, 25x Ethereum Longs Following Market Dip — Is Crypto Recovery On Cards?

An investor with a history of profitable trades opened a highly leveraged long position in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) following the market's dip on Thursday.

What happened: The whale, with over $60 million in total profits from spot and perpetual trading, took a 40x leverage bet on Bitcoin and 25x on Ether, according to Lookonchain.

The leverage increased their Bitcoin position to $50.47 million, with the entry price at $115,579.30. As of this writing, they were down nearly $516,000 on the bet and would be liquidated if the apex cryptocurrency tumbled to $87,424.

Similarly, their Ether position expanded to $23.89 million, with an entry price at $3,697 and liquidation at $1,810. The trader recorded unrealized losses of $654,000 as of this writing.

See Also: Why Crypto Investors Are Receiving Internal Revenue Service Warning Letters

Interestingly, it was not an isolated incident. According to Coinglass, Binance’s top traders, i.e, those with the highest margin balance, increased their long exposure to Bitcoin over the last 24 hours. The same was true for Ether.

Why It Matters: The risky bet follows a sharp correction in the cryptocurrency market, with Bitcoin sliding below $115,000 and Ether dropping below $3,700 as hotter-than-expected inflation pressured risk-on assets.

The market’s “Greed” sentiment dropped drastically in the last two days, according to the Crypto Fear & Greed Index, suggesting that buying pressure was easing.

Price Action: At the time of writing, BTC was trading at $115,914, down 2.12% in the last 24 hours, according to data from Benzinga Pro.  ETH exchanged hands at 3,692, down 4.43% from the previous day.

Benzinga Note: Leverage trading allows cryptocurrency traders to open larger positions using borrowed capital. While it can potentially amplify profits, it also significantly increases the risk of substantial losses due to the volatile nature of cryptocurrencies.

Read Next: 

• SEC’s Project Crypto ‘Looks Awesome,’ Says Tim Draper As He Pushes For A Bitcoin-Only World With Blockchain Powering Accounting And Payroll

Photo: Zakharchuk/Shutterstock