A major DeFi trader has taken a heavy loss after selling more than 700 Wrapped Bitcoin (WBTC) during a sharp market downturn. According to on-chain tracking firm Lookonchain, the wallet — identified as 0x3E38 — sold 700.2 WBTC for about $59.95 million over the past two days, locking in an estimated loss of $21.7 million.
The trader accumulated the WBTC between May and late July at an average price of roughly $116,600, when the holdings were valued at more than $81 million. With Bitcoin now trading near $84,200, the position became unsustainable, prompting a large sell-off across decentralized exchanges.
The sale comes during one of Bitcoin’s worst monthly declines since the FTX collapse in 2022. The cryptocurrency has fallen around 24% in November, with steep swings driven by global economic uncertainty and reduced market liquidity ahead of the U.S. Thanksgiving holiday. WBTC, which mirrors Bitcoin’s price on the Ethereum network, dropped below $84,000 before recovering slightly.
Analysts say the liquidation was likely triggered by mounting margin pressure within decentralized lending platforms such as Aave or Compound. As Bitcoin fell from mid-week highs around $95,500 to near $82,000, the trader’s leveraged position became too risky to maintain. Lookonchain said the investor “was forced to sell and cut his losses,” noting heightened speculation online about the unwind.
Similar losses have been reported elsewhere in the market. Another large holder recently sold more than 18,000 ETH at a $25 million loss and is still holding underwater WBTC positions. These liquidations have contributed to rising pessimism across crypto markets, with U.S. spot Bitcoin ETFs seeing record monthly outflows of $3.79 billion and Bitcoin mining activity slipping as profitability weakens.
However, some traders argue that large forced sales like this could indicate the market is nearing a bottom. Bitcoin remains above a key support area between $84,000 and $86,000, a zone some analysts see as a potential turning point if selling pressure eases.
Broader conditions remain uncertain. Bitcoin dominance has edged up to 58%, total crypto market value sits at about $2.9 trillion, and altcoins have shown slightly stronger performance this month despite the volatility. Meanwhile, comments from Federal Reserve officials calling for caution on further rate cuts and delays in U.S. economic data releases have added to investor unease.
With holiday trading likely to reduce liquidity, sharp moves may continue. The DeFi whale’s loss highlights the risks of leverage during periods of rapid price swings, leaving the market watching closely to see whether further forced selling emerges.
