A cryptocurrency whale who owns $26.47 million worth of Wrapped Bitcoin (WBTC) is selling it soon after narrowly avoiding liquidation on Friday.
On September 6th, when Bitcoin dropped as low as $52,550, a deep-pocketed whale with an Ethereum (ETH) address starting with Oxceef was on the verge of being liquidated on the decentralized finance (DeFi) platform Compound, according to on-chain data tracker Lookonchain.
Bitcoin provides a 1:1 backing for WBTC, an ERC-20 token. It permits token holders to utilize the token as security for financial transactions within the Ethereum network.
As Lookonchain puts it,
With a health rating as low as 1.07 and a liquidation price of $50,429, a whale on Compound may require a 488.45 WBTC ($26.47 million) liquidation.
During the 2022 price collapse, this whale was liquidated three times for a total of 74,426 cWBTC ($32.82 million).
When the price of Bitcoin fell late last week, the company also noticed other addresses selling the cryptocurrency. When Bitcoin dropped near to the entity’s break-even point, the firm claims that an address starting with 3ExiBLw sold off 100 BTC worth $5.35 million for a profit of $206,000.
Conversely, according to data cited by Lookonchain from analytics firm IntoTheBlock, 836,000 addresses purchased about 402,800 BTC, valued at $21 billion, between $51,113 and $54,303.
The blockchain tracker alerts users to the possibility that those addresses may sell their holdings for breakeven.
Lookonchain also observed cryptocurrency company Galaxy Digital depositing 1,458 BTC into Coinbase Prime, which is valued at over $78 million. Galaxy Digital could have sent the Bitcoin stack to Coinbase Prime for safekeeping or to be sold on the open market because Coinbase Prime provides trading and custody services.
Bitcoin is currently trading at $54,987 as of this writing.
