The primary cryptocurrency has plunged from its local high of almost $82,000 set earlier this month, while some analysts think a deeper decline may follow.
Despite the risks, one mysterious trader opened an extremely risky position, fueling speculation that they might know something we don’t.
Huge Success so Far
The analytics platform Lookonchain revealed that several hours ago, a trader known as 0x396d opened a 40x long position on 911.55 BTC ($70.08 million). The market participant will be liquidated if the asset’s price drops to $76,308 (unless they add extra collateral). Currently, BTC trades around $76,800 (per CoinGecko), very close to the danger zone.
What’s interesting is that the “gambler” has made 80 BTC trades recently, winning 92.5% of them. Naturally, this has prompted many X users to believe the trader may have inside information to make such staggering bets. One of them stated:
“92.5% win rate across 80 trades and now casually throwing on a $70M 40x BTC long. At what point do we stop calling this dude a gambler?”
The Danger is Real
As mentioned above, the leading digital asset has been quite shaky lately, and its downtrend may intensify in the short term depending on several key developments. Later today (September 11), the US Bureau of Labor Statistics will release the CPI report, which will provide vital inflation data.
Hotter-than-expected results could hurt risk assets like BTC and altcoins and may lead to the mysterious trader’s liquidation. The Federal Reserve is closely monitoring the data as it decides how to proceed with interest rates next week. As of now, it looks like a 0.25% hike is the most probable decision: a development that is likely to trigger a red wave across the crypto market.
Meanwhile, several analysts believe BTC is indeed on the verge of a collapse. X user Crypto With Harris ₿ described the pump to $82K as “a classic bull trap,” arguing that the bottom has not yet arrived. Moreover, the X user expects BTC to dump to $74,000 later today.
Niels chipped in, too, envisioning a dip to $74,000-$75,000 in the coming days, and after that, “things will get interesting.” The X user warned that if BTC loses the $74K level on the weekly timeframe, the downtrend will accelerate.
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