A seasoned Bitcoin holder liquidated their entire position this week to invest nearly $300 million in Ether.
This individual sold 550 Bitcoin (BTC), totaling around $62 million, after holding the asset for seven years.
After executing the sale on the decentralized exchange Hyperliquid, they initiated a $282 million long position on Ether (ETH) across three different accounts, as reported by a pseudonymous on-chain analyst, MLM.
“Either he received some incredibly bullish insider news, or he’s just taking a gamble. The execution appeared disorganized and rushed,” commented the on-chain investigator in a Wednesday X post.
Traders often monitor substantial moves to assess short-term market trends.
The hodler’s decision came shortly after Bitcoin approached a two-week low of $112,000 on Wednesday, indicating “increasing anxiety in the market” ahead of comments from US Federal Reserve Chair Jerome Powell and the Jackson Hole symposium on Friday, which may signal September’s interest rate policy, according to Ryan Lee, chief analyst at Bitget exchange, speaking to Cointelegraph.
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Hyperliquid experiences Bitcoin price dip of 200bps after $60 million BTC sale
Though the Bitcoin hodler’s $60 million sale may appear modest compared to larger transactions, it triggered a noticeable price dislocation on Hyperliquid.
The $60 million sale led Bitcoin’s price to decline by 200 basis points (bps) on the Hyperliquid exchange, with Bitcoin “now priced at a 30 bps discount compared to other exchanges,” noted MLM in a Wednesday X post.
A price drop of 200 bps translates to a 2% difference, roughly $2,267 per Bitcoin, based on today’s spot price of $113,370, indicating a notable disparity with other exchanges.
This occurrence may indicate that Hyperliquid’s order books are insufficiently deep to handle large trades without causing significant price alterations.
Cointelegraph has reached out to Hyperliquid for comments regarding the exchange’s liquidity status.
Related: Ether trader nearly wiped out following an epic surge from $125K to $43M
Hyperliquid achieved a new monthly trading volume high of $319 billion in July, contributing to a cumulative high in decentralized finance perpetual futures platforms of $487 billion, as reported by Cointelegraph on August 7.
In July, Hyperliquid captured 35% of all blockchain revenue, gaining significant value at the expense of Solana, Ethereum, and BNB Chain, according to a monthly crypto recap report by VanEck researchers said.
Hyperliquid has ascended to the sixth-largest derivatives exchange globally, boasting over $12 billion in 24-hour open interest, moving up from the 12th position since early April, as indicated by CoinGecko data.
Hyperliquid gained traction in April 2024 following the launch of spot trading, supported by an aggressive listing strategy and a user-friendly interface.
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