An anonymous cryptocurrency whale has infused millions into the market to prevent a looming liquidation of over $300 million in Ether, as market conditions deteriorate under increasing macroeconomic pressures.
This whale is reportedly facing liquidation risks on a 220,000 Ether (ETH) position on a decentralized finance (DeFi) lending platform. To mitigate this risk, the investor deposited 10,000 ETH—valued at over $14.5 million—and 3.54 million Dai (DAI) to elevate the liquidation price of their position, as noted by a blockchain analytics firm on April 7.
> “If $ETH decreases to $1,119.3, the 220,000 $ETH ($340M) will face liquidation.”
This incident occurred shortly after another Ether investor was liquidated for more than $106 million on a different DeFi lending platform.
The whale incurred a loss of over 67,000 ETH when the asset experienced a nearly 14% drop on April 6. The platform in question mandates an overcollateralization ratio, generally set at 150% or higher, requiring users to deposit at least $150 worth of ETH to borrow 100 DAI.
Recent data indicates that over 446,000 positions have been liquidated in the last 24 hours, with total losses exceeding $1.36 billion. This figure encompasses $1.21 billion in long positions and $152 million in short positions.
The largest liquidation recorded was a $7 million Bitcoin (BTC) position on a major crypto exchange.
Amid these events, markets faced turmoil following an announcement of reciprocal import tariffs by US President Donald Trump on April 2. This decision triggered disruptions in global markets, resulting in a staggering $5 trillion loss for the S&P 500, marking its most significant two-day decline ever.
However, this tariff announcement might finally alleviate the global uncertainty that has been affecting both traditional and digital markets for the last two months.
“In my view, these tariffs symbolize the ongoing uncertainty in the markets,” explained a market analyst. “Liberation Day represents the height of this phase, a climax of uncertainty. Now that it’s clear, everyone is aware of the new landscape.”
The resolution of tariff-related uncertainty could spark a shift towards crypto markets, as investors begin to buy into undervalued digital assets. Additionally, a crypto intelligence firm has estimated a 70% chance that the market may reach a bottom by June, contingent on the progress of tariff negotiations.