On January 19, on-chain analytics revealed that a prominent bearish whale (address 0x5d2f4) exited a significant short position by closing out 61,208 LIT shorts, securing a $55,000 profit. This move highlights the strategic timing and risk management skills of seasoned market participants navigating volatile crypto markets.
Betting Against Bitcoin's Rise?
Despite cashing in on the LIT trade, the whale remains heavily committed to a bearish outlook. The same address continues to hold a 20x leveraged short on 499.9 BTC, with an average entry price of $111,499.3. This position is now sitting on unrealized gains of approximately $9.47 million, signaling strong conviction in a potential price correction.
- LIT shorts closed: 61,208 tokens
- Profit realized: $55,000
- Current BTC short leverage: 20x
- Average entry price: $111,499.3
- Unrealized P&L: $9.47 million
Amid ongoing volatility in the Bitcoin market, such high-conviction, leveraged positions add another layer of complexity for traders. Market observers are closely watching this address for future signals, while cautioning against the systemic risks tied to extreme leverage.