Ethereum expert who made $96 million, why take a 20x leverage on BTC

A whale/institution that earned $96.67 million through ETH swing trading has recently shifted to contract trading. Starting from January 6, this major player gradually transferred 15.5 million USDC into Hyperliquid, then opened a long position with 980 BTC at 20x leverage (worth approximately $90.87 million). Currently, this position is at a floating loss of $150,000. Meanwhile, the whale also holds 30,000 spot ETH, valued at about $97.7 million. This series of actions reflects a strategic shift among large market players from steady profit-taking to aggressive long positions.

From Swing Spot Trading to Leveraged Contracts: Why the Strategy Changed

Changes in the whale’s capital allocation

The whale’s operational path is quite clear: first, it accumulated $96.67 million profit through multiple ETH swing trades, then shifted part of its funds into high-risk contract markets. The specific allocation is as follows:

• Contract position: 980 BTC, 20x leverage, position value of $90.87 million
• Spot holdings: 30,000 ETH, valued at $97.7 million
• Available funds: $15.5 million USDC deployed on Hyperliquid

This setup shows an aggressive stance. Using nearly $96 million profit to open a $90.87 million 20x leveraged BTC position essentially means using previous gains to pursue larger returns.

Entry timing and price risk

The whale opened the position at $92,885 per BTC, but according to the latest data, BTC is currently at $92,641.72. This means BTC has dropped about $243 after opening, resulting in a floating loss of $150,000.

This timing is noteworthy. The whale chose to go long on BTC during January 6-7, a period when the market was adjusting. Given the 1.30% 24-hour decline in BTC, this large player was adding to its position during a pullback, which is often interpreted as a bullish signal.

Market context: large players increasing holdings, retail investors exiting

Macro trend support

This whale’s bullish actions are not isolated. According to Santiment data, since December 17, whales and large holders with 10–10,000 BTC have accumulated an additional 56,227 BTC. This indicates a consensus among institutions and large investors that BTC is bullish.

In contrast, retail traders holding less than 0.01 BTC have started to take profits, which market analysts interpret as a warning sign of a “bull trap” or “false rebound.” However, from a structural perspective, the divergence of large buy-side and retail sell-side may actually reinforce the upward trend.

Activity in the contract market

The whale’s choice to operate with 20x leverage on Hyperliquid reflects the platform’s attractiveness as a contract trading venue. Data shows that large traders on Hyperliquid are very active, with ongoing battles between longs and shorts. This platform has become an important on-chain arena for contract trading.

Risk considerations: the double-edged sword of high leverage

Liquidation risk

With 20x leverage on 980 BTC, what is the liquidation price? Although no explicit figure is provided, we can estimate: starting from an entry at $92,885, a 20x leverage position would be liquidated if BTC drops about 5% (roughly $4,600). This indicates that in the current volatile environment, this position carries significant risk.

Potential for floating loss to expand

Currently, the position is at a floating loss of $150,000. If BTC continues to decline, losses could quickly grow. For a whale that has earned $96.67 million, a $150,000 unrealized loss is within tolerable limits, but it exemplifies the double-edged nature of high leverage.

Personal opinion

This whale’s actions reveal a market psychology: after accumulating enough profit through cautious swing trading, it is now willing to take on higher risks for bigger gains. This is common at turning points from bear to bull markets. However, 20x leverage in crypto is a double-edged sword; even experienced large traders can be wiped out in volatile swings.

Future focus points

• Whether BTC can hold above $92,600, which affects the safety of this position
• Whether this whale will continue to add or reduce positions, potentially becoming a market indicator
• The activity of other large players on Hyperliquid, which will influence liquidity and volatility in the contract market

Summary

A trader who earned $96.67 million through ETH swing trading suddenly shifted to BTC contracts with 20x leverage. This move reflects both a bullish signal from large market players and a pursuit of high risk. Although currently at a $150,000 floating loss, the real significance of this position lies in its representation of market sentiment shifting from cautious profit-taking to active aggressive positioning. Against the backdrop of whales increasing BTC holdings and retail investors taking profits, such aggressive moves may become more common. Key factors to watch are BTC’s support levels and the whale’s subsequent actions, which often serve as early indicators of market turning points.