on-chain data from Arkham shows that the Hyperunit whale wallet transferred $341.8 million worth of Bitcoin to Binance, a sign of potential selling and short-term supply pressure.
This move comes after a chain of high-risk, heavily leveraged transactions, including a massive ETH liquidation that resulted in significant losses. The overall picture suggests that whales are shifting from aggressive expansion to prioritizing liquidation and Capital preservation in the volatile crypto market.
- The Hyperunit whale wallet transferred $341.8 million worth of BTC to Binance, increasing the likelihood of selling pressure.
- Following the liquidation of an ETH position resulting in a $250 million loss, the trading behavior showed a very high level of leverage and rapid re-entry into trades.
- Weak technical indicators and a decrease in Open Interest from approximately $61 billion to nearly $49 billion suggest that the market is "downleveraging" and becoming more cautious.
Hyperunit wallets transferring BTC to Binance increase the risk of selling pressure.
Arkham noted that Hyperunit's wallet sold over $340 million worth of BTC, of which $341.8 million was transferred to Binance, which is often XEM as a sign of readiness for distribution to the market.
According to Arkham, the whale wallet associated with Garrett Jin sold a total of over $340 million worth of Bitcoin (BTC). The majority of this flow was channeled through a $341.8 million transfer to Binance, a popular destination for investors preparing to sell or restructure into other assets.
Notably, this whale's BTC holdings once reached nearly $11.5 billion, but have now decreased to approximately $2.2 billion. Instead of continuing to "hold during the bull run," the decision to reduce positions reflects a priority on risk reduction and Capital preservation, especially after losses related to leveraged trading.
The liquidation of a leveraged ETH position marks a turning point for a high-risk strategy.
On February 1st, Hyperunit's heavily leveraged ETH position on Hyperliquid was completely liquidated, resulting in a $250 million loss and virtually wiping out the balance on the platform.
Arkham reported that the leveraged ETH position held by whale Hyperunit on Hyperliquid was fully liquidated, resulting in a $250 million loss and leaving the platform with only $53 worth of ETH. At that time, ETH was trading around $2,307, raising questions in the market about the ability to sustain such high-risk trading volumes.
Despite suffering losses, whales made an effort to "come back" at the end of January by buying over $60 million worth of ETH after previously selling nearly $100 million. Prior to that, whales held over 223,000 ETH but sold over 30,000 ETH near low prices, closing at a loss of approximately $9 million.
Whales are constantly re-entering orders and rotating Capital between ETH, SOL, and BTC.
After a series of quick buybacks, the whales have rebuilt their portfolios of nearly $750 million across ETH, SOL , and BTC, but the behavior suggests a short-term bias rather than long-term confidence.
Arkham noted that whales subsequently rebuilt positions worth nearly $750 million allocated across Ethereum (ETH), Solana (SOL), and Bitcoin (BTC) when ETH was around $2,828. This signal reflects short-term confidence, but lacks "long-term consistency" due to the rapid pullbacks and rebounds.
The aggressive trading style emerged in December, when whales built up over $400 million in ETH exposure after making around $200 million during the October crash. This suggests a strategy heavily reliant on leveraging and opportunistic profit-taking.
During the same period, the whale also withdrew $361 million worth of ETH from Staking , borrowed $160 million worth of USDT through AAVE , and transferred it to Binance when ETH was near $2,800. This chain of transactions is often associated with preparing for large leveraged bets or restructuring to other assets/positions.
The weakening Bitcoin price and Open Interest indicate that the market is delevering.
Bitcoin is trading around $71,454.66, accompanied by weak technical signals and a sharp drop in Open Interest from approximately $61 billion to nearly $49 billion, reflecting a trend of position withdrawal and risk reduction.
At the time of recording, BTC was trading near $71,454.66. Technical indicators included a weak MACD, a red histogram, and an RSI below neutral, suggesting that bearish momentum remains dominant despite signs of slowing down.
In the Derivative market, declining Open Interest (OI) indicates that traders are withdrawing rather than opening new positions. The drop in OI from approximately $61 billion to nearly $49 billion signals widespread "deleverage," as overly risky positions are forced to close or are proactively reduced.
Amidst increasing uncertainty, both retail and institutional investors tend to prioritize Capital preservation in the form of cash or stablecoins. While uncomfortable in the short term, the leverage cleanup process can help stabilize the market by reducing systemic risk and limiting extreme volatility.
Overall signal: from aggressive expansion to Capital protection.
The sale of over $340 million worth of BTC and the transfer of the majority to exchanges indicates a decrease in whale risk appetite, prioritizing liquidation and defensive measures after significant leveraged losses.
A synthesis of on-chain data and trading chain reveals a familiar pattern: high leverage, large bets, losses followed by quick re-entry, and constant movement of funds between platforms. When market conditions change, the downside of this strategy becomes apparent; even small fluctuations can lead to liquidation and significant losses.
From holding over $11 billion worth of BTC to currently holding around $2.2 billion, Hyperunit Whale is shifting from "offensive" to "defensive." This underscores a reality of the cryptocurrency market: even large players are vulnerable when liquidation, sentiment, and leverage reverse.
Frequently Asked Questions
Is transferring $341.8 million worth of BTC to Binance definitely a sale?
While not entirely certain, transferring large amounts of BTC to exchanges is often XEM as a signal of potential selling or preparation for portfolio restructuring. Arkham data describes this as a sale of over $340 million worth of BTC, of which $341.8 million was sent to Binance.
Why is the liquidation of ETH positions important to whale behavior?
Because it marked a turning point in risk: the heavily leveraged ETH position was completely liquidated, resulting in a $250 million loss and a price of only $53 on Hyperliquid. Following this shock, subsequent moves showed a more cautious approach and a focus on liquidation.
What does the drop in Open Interest from $61 billion to $49 billion tell us?
It reflects the process of reducing leverage as traders close out positions or are forced to exit trades. Decreased open interest (OI) is usually accompanied by cautious sentiment, fewer new positions opened, and a more sensitive market to changes in liquidation.
