The “Hyperliquid 50x Whale”, a well-known trader that played high-risk and high reward strategy yesterday and lost approximately $3 million, has been observed taking high-leverage positions that suggest a strategic bet on ETH/BTC exchange rate.
From the whale’s recent activities, it can made out that calculated approaches are being adopted across multiple platforms, which include Hyperliquid and GMX.
Whale’s Positions Across Hyperliquid and GMX
On Hyperliquid, the whale has open positions with a 2.3 million USDC margin, which comprises of a 25x long on ETH and a 40x short on BTC. Simultaneously, the trader has deployed an additional 1.5 million USDC margin to open a 26x ETH long position on GMX.
This combination of trades indicates only one thing that the trader is deliberately betting on ETH outperforming BTC. On-chain analyst ai_9684xpta supports this theory, highlighting that the trader’s ETH long and BTC short positions on Hyperliquid are roughly balanced in size, while the GMX position is exclusively long on ETH.
ETH/BTC Exchange Rate Hits Multi-Year Low
The timing of these trades is noteworthy, as the ETH/BTC exchange rate recently dropped to 0.0228, its lowest level since June 2020. This decline may have presented an opportunity for the trader to capitalize on potential rebound in ETH relative to BTC.
Profits and Risks of High-Leverage Trading
This is not the first time the “Hyperliquid 50x Whale” has made headlines. On March 12, the trader reportedly closed a massive 175,000 ETH position on Hyperliquid, securing $1.86 million in daily profits and $15.01 million in cumulative gains over recent trades.
However, these high-leveraged strategies come with significant risks. Hyperliquid itself incurred a $3.23 million loss after liquidating part of the whale’s position due to margin reductions.
The whale’s activity indicates both the opportunities and danger associated with high leverage trading within the crypto markets. As of now, the strategy appears to be profitable.
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