An anonymous cryptocurrency whale infused millions of dollars in urgent funding to avert a possible liquidation exceeding $300 million in Ether as the markets faced renewed macroeconomic headwinds.
This whale is reportedly on the brink of liquidation concerning a 220,000 Ether (ETH) position on MakerDAO, a decentralized finance (DeFi) lending protocol. To prevent liquidation, the investor deposited 10,000 ETH, valued at over $14.5 million, along with 3.54 million Dai (DAI) to elevate the position’s liquidation threshold, according to reports from a blockchain analytics firm.
“If $ETH drops to $1,119.3, the 220,000 $ETH ($340M) will be liquidated.”
This situation unfolded just hours after another Ether investor experienced a liquidation exceeding $106 million on the DeFi lending platform Sky.
The whale incurred losses surpassing 67,000 ETH when the asset plummeted by about 14% on April 6. Sky operates with an overcollateralization ratio, typically 150% or more, which requires users to deposit at least $150 worth of ETH to borrow 100 DAI.
According to data from CoinGlass, over 446,000 positions have been liquidated in the last 24 hours, resulting in total losses exceeding $1.36 billion, which includes $1.21 billion from long positions and $152 million from shorts.
The largest single liquidation event involved a $7 million Bitcoin (BTC) position on a prominent crypto exchange.
Crypto markets are shaken following tariff announcements by Trump, yet a 70% recovery chance is projected by June.
On April 2, U.S. President Donald Trump unveiled reciprocal import tariffs, triggering ripples throughout global markets that resulted in a $5 trillion decline in the S&P 500, marking its largest two-day drop in history.
Nevertheless, this tariff announcement might finally bring resolution to the global uncertainty that has beset both traditional and digital markets over the past two months.
“In my view, the tariffs symbolize the underlying uncertainty within the markets,” stated Michaël van de Poppe, founder of MN Consultancy. “Liberation Day is basically the culmination of that period, the peak of uncertainty. Now, it’s been laid bare. Everyone understands the new dynamics.”
With the conclusion of tariff-related uncertainty, there’s a possibility of a "rotation back to the crypto markets," as investors may begin to acquire assets that are perceived as "undervalued," according to van de Poppe.
Additionally, crypto intelligence firm Nansen estimated a 70% likelihood that the market may find its bottom by June, contingent on how tariff negotiations progress.