According to Hyperinsight on March 25, Circle (CRCL) experienced a dramatic 20.1% single-day decline, closing at $102.70. Despite the steep drop, on-chain data reveals a contrasting narrative: two whale wallets, identified as 0xcee and 0x51b, each opened long positions worth approximately $1 million.
Whale Entry Details
Data shows that wallet 0xcee entered at an average price of $106, while 0x51b opened slightly lower at $103. Both positions face significant liquidation risk, with the nearest liquidation price set at $95.8. This means if CRCL declines another 6.7%, both longs would be force-liquidated, wiping out the $1 million positions.
Market Context and Risks
Notably, the same report notes that CRCL’s cumulative gain since listing stands at +286.77%. This suggests the asset had already rallied significantly before the 20% crash, making it a sharp correction. The whales’ decision to go long amid such volatility may be based on expectations of a technical bounce, but the high-leverage nature of the trades raises serious risk flags.
Derivatives Warning
This event once again highlights the fragility of on-chain leveraged trading. As prices approach liquidation thresholds, cascading long squeezes could exacerbate selling pressure. For retail investors, whale counter‑trend bets should not be seen as a “buy the dip” signal, but rather as a high‑stakes gamble. With CRCL already up nearly 3x from its listing price, any deeper correction could trigger massive liquidations.