Crypto’s million-dollar whales began unloading their BTC holdings as the altcoin approached liquidation.
According to Lookonchain data, whales with assets worth millions of dollars are about to reset their transactions. The recent crypto decline has squeezed whales who opened transactions in WBTC, ETH, LINK, UNI, and MKR. Whales started selling WBTC in order to avoid liquidation in these transactions.
Whales sell BTC to hedge transactions
Lookonchain mentioned that whales who opened bullish transactions in altcoins on the Aave platform were unsettling the market. Whales started selling WBTC to avoid liquidation in transactions.
According to the data reflected in the blockchain records, whales opened bullish transactions for WBTC, ETH, LINK, UNI and MKR. The assets of the whales, who invested $11 million in these transactions, are at risk. In bullish positions opened by borrowing method, the price decrease increased the debt burden. Whales, who wanted to ease their debt burden, found the solution by selling their BTCs.
A whale who is long $WBTC, $ETH, $LINK, $UNI, and $MKR on #Aave began selling $WBTC to repay the debt.
They deposited $11M assets on #Aave and borrowed $8.45M stablecoins.
The health rate is 1.08, which is near liquidation risk.https://t.co/ej8zjfJ3aS pic.twitter.com/En6O2F53KN
— Lookonchain (@lookonchain) October 13, 2023
Upward transactions are generally preferred from decentralized exchanges. Whales who enter into transactions on these exchanges use the margin method for their preferred transactions. Margin stands out as transactions opened by using an asset as collateral and borrowing.
Whales preferring margin in Aave caused danger in crypto. This move by the whales may cause difficult days for crypto, which is already in decline.
