When cryptocurrency onchain data is examined, it is seen that a huge cryptocurrency whale will undergo a massive liquidation if the Bitcoin price drops.
According to data provided by Lookonchain, this crypto whale has a liquidation risk for 488.45 Wrapped Bitcoin (WBTC) on decentralized finance (DeFi) platform Compound. The whale’s position health ratio has fallen to 1.07 and will be liquidated if the Bitcoin price drops to 50,429.
WBTC is an altcoin obtained as equivalent to BTC on the Ethereum network by locking Bitcoin to certain bridges, and users can use these BTC equivalents on DeFi platforms. The BTC network does not normally support smart contracts, but this obstacle is overcome thanks to wrapped tokens.
However, interestingly, the same whale also has a long history in this regard. The wallet was liquidated three more times during the cryptocurrency crash of 2022. The whale’s total loss was 74,426 BTC, which corresponds to a total of $ 32.82 million.
*This is not investment advice.