Whale Leverages $13M Loan to Buy 117.5 WBTC Holds 262.5 WBTC
On August 27, on-chain analyst Yu Jin reported that a crypto whale leveraged an Aave loan to buy WBTC. After withdrawing 145 WBTC from Binance and depositing it as collateral on Aave, the whale borrowed $13 million USDT. The funds were used to purchase 117.5 WBTC. The trader now holds a total of 262.5 WBTC (about $28.95 million), at an average cost of $110,286 per WBTC. This move underscores growing use of leverage in the WBTC market.
Bullish
This large-scale leveraged purchase signals bullish expectations from a major market participant. Historically, whale-driven leveraged accumulations on DeFi platforms like Aave have coincided with upward price movements in wrapped assets. By borrowing USDT against WBTC collateral, the whale increases buying pressure, potentially driving WBTC and BTC prices higher in the short term. However, reliance on leverage adds risk, and a market downturn could trigger liquidations. Overall, the move underlines growing confidence in WBTC, suggesting positive momentum but with elevated volatility risks.