OG BTC whale pumps pressure with 20 million USDC: Defensive strategy amid strong correction waves

In recent days, the crypto market has witnessed unusual movements from major whales. A trading legend in BTC just took a significant step — injecting 20 million USDC into their account to counteract increasing downward pressure. This decision reflects the difficult situation faced by large investors.

Additional Margin Deposit During Tension: Emergency Defensive Move

In the context of a sharp market correction, this whale added more capital to the exchange not to increase orders, but to boost collateral assets. This action is a necessary defensive measure to avoid liquidation when long positions are heavily in the red. It demonstrates proactive risk management by an experienced trader.

Currently, BTC is around $71,950, and ETH is at $2,140. These fluctuations have directly impacted the value of large open positions previously held.

Long Position Structure and ETH Concentration Risk

Most notably, this whale holds an enormous long position with an unbalanced distribution:

• ETH: 223,340.65 tokens — the largest position in the portfolio
• BTC: 1,000 tokens — the second-largest position
• SOL: 511,612.85 tokens, currently trading around $91.27

This concentration in a single asset (ETH) is a double-edged sword. It offers high profit potential but also entails extremely high risk. Any sharp drop in ETH could collapse the entire strategy of this whale.

Source of Losses: Trading Losses and Accumulated Funding Fees

The total profit of this account has experienced a dull journey — from a peak of $142.5 million down to $23 million. This decline results from two main factors:

1. Realized losses on positions: approximately $74 million
2. Funding fee costs: an additional $8 million just to maintain long orders

This indicates that maintaining large positions in a declining market environment incurs enormous costs. Funding fees are not trivial expenses but significant outlays, especially when the market trend is unfavorable.

Risk Analysis: Positive Step or Reckless Gamble?

Adding an extra 20 million USDC shows this whale’s determination to hold onto their positions. This can be seen as confidence that the market will recover. However, this strategy also carries many risks:

• If ETH continues to decline, this pressure injection is merely a delaying tactic, not a fundamental solution
• The additional capital is only enough to sustain a few more days if the market weakens further
• The risk of liquidation remains very high if the next wave of decline occurs

Nevertheless, from a long-term perspective, this OG whale is tightening its main long positions, which could be interpreted as an accumulation phase. The only thing that might salvage this strategy is a strong market rebound.

Note: This content is for analysis and reference purposes only. It is not investment advice. Please conduct thorough research and proper risk management before making any investment decisions.