Bitcoin nears $76,300 as $78M 40x short faces liquidation risk
Bitcoin (BTC) briefly approached $76,300 on April 17, putting a large leveraged short at immediate liquidation risk. A major account labeled “Strategy Counterparty” opened a $78.1M short on April 1 with 40x leverage. Its liquidation level is around $76,380, and unrealized losses already exceeded $4.3M (about a 220% loss rate). Weekly losses climbed above $7.8M, and the position reportedly has no meaningful hedge or closure.
At the same time, the same entity’s spot holdings in BTC swung back into profit. After BTC moved above $75,000, Strategy reportedly showed about $232M in unrealized gains, with 780,897 BTC and an average cost near $75,577.
On-chain activity also showed fresh leverage demand: another whale initiated a 40x BTC long worth roughly $6.95M at an average entry near $75,320. The trade was up about 20% quickly and set a limit to close at $77,000, without a stated stop-loss; its liquidation level was around $74,287.
Overall, the news highlights how fast risk compounds in 40x BTC positions. Traders should watch BTC’s approach to liquidation thresholds closely, as even modest upside can force short liquidations and intensify volatility.
Bullish
The article points to a bullish short-squeeze setup for BTC: a large 40x short (~$78.1M) is hovering just below its liquidation trigger near $76,380. In similar past episodes across crypto derivatives markets, when BTC approaches key liquidation levels, forced buy-to-cover can accelerate upward momentum and create rapid price spikes, at least in the short term.
However, the same news also notes that Strategy’s BTC holdings have returned to profitability, while another whale opened a fresh 40x long—both factors can increase demand, but the high leverage involved can also make price action unstable. In the medium term, if BTC quickly clears liquidation zones and fails to attract sustained spot/flow support, the move may mean-revert. Traders should therefore watch: (1) BTC’s proximity to the $76.3k–$76.38k liquidation band, (2) whether open interest and funding react as shorts get stressed, and (3) whether the newly opened BTC long at ~$75.32k holds without triggering a volatility cascade.