Crypto Plunge Fueled by Whale Liquidation Storm

GetRichLeek · 2026-03-12T13:06:52+00:00

The cryptocurrency market has experienced a sharp decline recently, primarily triggered by a well-known whale suddenly reducing its position by $65 million in Ethereum, which set off a chain reaction of liquidations and caused significant drops in both Bitcoin and Ethereum. Insufficient market liquidity made it difficult to absorb the large-scale sell-off, sparking a wave of follow-on liquidations. The market is questioning whether the whale possessed insider information or was simply engaging in arbitrage, highlighting the risks inherent during periods of thin liquidity.

GetRichLeek

2026-03-12 13:06:52

Abstract generation in progress

The shocking truth behind the crypto crash is gradually surfacing. According to on-chain data analysis, a well-known whale’s sudden reduction of holdings became the key trigger for this market collapse. This weekend, Bitcoin plummeted to $70,360, and Ethereum dropped to around $2,060, with nearly $380 million in long-term bullish positions liquidated within just 30 minutes.

Whale’s Sudden Reduction Sparks Chain Reactions

The whale responsible for triggering market turbulence is not an unknown figure. According to trading records, the same whale wallet profited $200 million through short-selling before the October stock market crash, drawing significant market attention. Over the past month, this whale continued building long positions, accumulating over $700 million in holdings, clearly optimistic about the market’s future.

However, the situation reversed during the weekend when liquidity was at its most fragile. Taking advantage of the low trading volume, the whale sold over $65 million worth of Ethereum long positions in just 10 minutes. This massive reduction immediately triggered a chain reaction in automated trading systems.

Weekend Low Liquidity as an Accelerator

The key issue lies in the weekend liquidity environment of the crypto market. During sharp drops in trading volume, large sell orders cannot be quickly absorbed by the market, leading to severe lack of buy-side support. As the whale’s reduction caused an initial price decline, many arbitrageurs and follow-traders also began closing positions intensively. Algorithmic trading further amplified this decline, turning a simple reduction into a wave of liquidations.

Market Suspicion: Insider Info or Arbitrage?

Currently, a pressing question looms: does this whale possess some insider information, or did it simply choose the weekend as a strategic window for quick arbitrage? If the former, it could indicate a larger market correction brewing; if the latter, it suggests the whale is bullish on the market and plans to re-enter at lower prices. Regardless, the crypto crash has sent a warning to market participants—single whales can shake the entire market in an instant, and the risks during periods of low liquidity should not be underestimated.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes