What signal does the hundred-billion whale's heavy ETH position release after a loss-cutting liquidation

After losing $3.77 million on BTC contracts, the whale 0xfb7 quickly adjusted its strategy. This whale transferred the remaining 31.7 million USDC from closing positions into an exchange, purchased 10,000 ETH, and converted them into stETH. Currently, this wallet holds 40,060 stETH, with a total value of approximately $126 million. What market signals are reflected behind this series of actions?

Summary of the Loss Event

Rapid stop-loss on BTC long positions

According to the latest news, whale 0xfb7 started going long on BTC on January 7. The whale transferred a total of 35.5 million USDC into Hyperliquid, gradually building a position with 20x leverage. By 2 a.m. on January 8, the position reached 3,846 BTC, worth $350 million, with an average entry price of $92,096.

However, BTC then experienced a pullback. The whale chose to close the position at an average price of $91,158, incurring a loss of $3.77 million. The entire position was held for only about 12 hours, demonstrating the whale’s risk management awareness—cutting losses decisively on high-leverage positions during adverse movements rather than holding on.

Quick shift to ETH allocation

More noteworthy is the fund flow after closing the position. The whale withdrew the remaining 31.7 million USDC from Hyperliquid back on-chain and deposited it into a CEX to buy 10,000 ETH. This ETH was then converted into stETH (Ethereum staking derivative) and transferred to another wallet.

This wallet currently holds 40,060 stETH, which, at the current ETH price of $3,163.17, amounts to about $126 million.

Logic Behind the Strategy Shift

The whale’s historical expertise

According to relevant data, this whale previously achieved a total profit of $96.67 million through multiple swing trades in ETH. This indicates that the whale has a mature strategy and extensive experience in ETH trading. The shift from BTC contracts’ losses to ETH spot holdings is, to some extent, a return to its strongest area.

Recent market performance of ETH

ETH’s current price is $3,163.17, with a 6.17% increase over the past 7 days and a 1.67% increase over 30 days. In terms of market share, ETH accounts for 12.22% of the total cryptocurrency market cap, roughly $38.178 billion.

ETH’s relatively strong performance at this time may be a key factor attracting the whale to allocate more.

Market Signal Analysis

Preference for large capital movements

This whale’s behavior change may signal that, in the current market environment, spot ETH holdings are considered more attractive than high-leverage BTC trading. Especially for large-scale participants, staking derivatives like stETH offer a dual benefit: participation in ETH price appreciation and earning staking yields.

Demonstration of risk management

Although this BTC trade ended in a loss, the whale’s quick stop-loss demonstrates rational risk management. This could serve as a reference for other participants—timely stop-losses in high-leverage environments are often wiser than stubbornly holding positions.

Future Focus

This wallet currently holds a substantial $126 million in stETH. If the whale continues to increase ETH holdings, it could provide ongoing support for ETH prices. Conversely, signs of reduction might impact the market. Given the whale’s historical success in ETH trading, its future moves are worth monitoring closely.

Summary

Whale 0xfb7’s transition from closing a losing BTC long position to large ETH allocation reflects two key messages: first, the whale has risk awareness and can decisively cut losses on high-leverage positions; second, based on its strengths and market conditions, it has chosen to return to ETH, a more familiar domain. This capital flow shift may indicate that, in the current market environment, ETH is more favored by large funds compared to high-leverage BTC contracts. For market participants, the adjustments of major whales often reveal subtle market changes and warrant close attention.