In a notable development on the blockchain landscape, a major whale or institutional investor has realized substantial profits from a well-timed WBTC investment strategy. According to on-chain analysis by Ejin (a pseudonymous analyst), an entity that accumulated 1,495 wrapped Bitcoin (WBTC) between July and November 2024 using a loop borrowing strategy has begun systematically selling its holdings to lock in gains. This move underscores how sophisticated investors are leveraging decentralized finance (DeFi) tools to amplify returns during bullish market cycles.
The whale’s average purchase price was $69,162 per WBTC, amounting to a total investment of approximately $103.4 million. Since March 2025, the entity has been gradually transferring portions of its WBTC holdings to Binance for conversion into USDC, which were then used to repay outstanding loans. To date, 723 WBTC have been sold at an average price of $95,678, generating around $69.17 million in USDC proceeds and realizing a profit of $19.17 million.
Additionally, the investor still holds 753.8 WBTC, currently valued at approximately $82.6 million, representing an unrealized gain of **$30.58 million. In total, this strategic position has yielded a combined profit—realized and unrealized—of $49.75 million**, showcasing one of the most successful on-chain trading narratives of early 2025.
👉 Discover how smart money moves are shaping the crypto market in 2025.
The Loop Borrowing Strategy Behind the Trade
Loop borrowing is a DeFi technique that allows users to repeatedly borrow stablecoins against collateral (often ETH or BTC), then use those funds to purchase more collateral, repeating the cycle to amplify exposure. This strategy is particularly effective in bull markets when asset prices rise consistently.
In this case, the whale likely deposited ETH or another yield-generating asset as collateral on platforms like Aave or MakerDAO, borrowed stablecoins (e.g., DAI or USDC), purchased WBTC, and then used the WBTC as additional collateral to borrow more funds—repeating the process multiple times across several months.
This compounding effect enabled the investor to acquire a large WBTC position without upfront liquidity equivalent to the full value. With BTC’s price rising from below $70,000 in mid-2024 to over $110,000 by mid-2025, the leverage magnified returns significantly.
Market Context: Bitcoin Approaches All-Time High
Bitcoin (BTC) has continued its upward trajectory in 2025, briefly surpassing the $110,500 mark in early July—a mere $1,000 away from its all-time high of $120,000. At the time of writing, BTC trades slightly below $110,000 at $109,483 but remains in strong bullish territory.
Despite temporary pullbacks, sentiment remains largely positive among institutional and retail investors alike. The proximity to new highs has reignited interest in spot Bitcoin ETFs and leveraged trading strategies, with many watching for breakout signals.
👉 Learn how top traders analyze Bitcoin’s price movements before major breakouts.
Broader Financial Markets: Strong U.S. Data Cools Rate Cut Bets
The macroeconomic backdrop has also played a crucial role in shaping investor behavior across both traditional and digital asset markets.
U.S. non-farm payroll (NFP) data for June came in stronger than expected, indicating continued labor market resilience despite ongoing tariff pressures. As a result, expectations for a Federal Reserve rate cut in July have diminished significantly. The yield on the 10-year U.S. Treasury note climbed to 4.35%, reflecting increased risk appetite and higher inflation expectations.
Equity markets responded positively:
- The Dow Jones Industrial Average (DJIA) rose 0.77%
- The S&P 500 gained 0.83%, closing at 6,279
- The Nasdaq Composite advanced 1.02%, hitting a new record at 20,601
International currency markets also saw notable shifts. The GBP/JPY pair rallied due to improved global risk sentiment, while USD/JPY declined by 9% in the first half of 2025—the yen’s best performance in years—driven by shifting monetary policy expectations in Japan.
Meanwhile, the passage of the “Big Beautiful Bill” (revised by the Senate and approved by the House) signaled potential fiscal momentum ahead of the July 4 deadline, further supporting market confidence.
Key Takeaways for Crypto Investors
This whale’s successful WBTC trade offers several insights for retail and institutional participants:
- Timing matters: Accumulating during periods of relative market calm (mid-2024) allowed for lower average entry prices.
- Leverage can multiply gains—but also risks: Loop borrowing amplified returns but would have led to liquidation if BTC had dropped sharply.
- Gradual profit-taking reduces emotional trading: By selling in tranches since March, the investor avoided dumping large volumes at once, minimizing price impact.
- On-chain transparency enables strategic observation: Public blockchain data allows analysts and traders to study smart money flows and adjust their own strategies accordingly.
Frequently Asked Questions (FAQ)
Q: What is WBTC?
A: Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin on the Ethereum blockchain, backed 1:1 by actual BTC reserves. It enables Bitcoin to be used in Ethereum-based DeFi applications such as lending, borrowing, and yield farming.
Q: How does loop borrowing work?
A: Loop borrowing involves using collateral to borrow stablecoins, buying more collateral with those funds, and repeating the process multiple times to increase exposure. It's commonly used on DeFi platforms like Aave or MakerDAO.
Q: Why did the whale sell only part of their WBTC?
A: Selling in stages allows investors to lock in profits while retaining upside potential. It also reduces market impact compared to selling large amounts at once.
Q: Is this kind of profit typical in crypto markets?
A: While not common for retail investors, large gains like this are increasingly seen among well-capitalized entities using advanced DeFi strategies during strong bull runs.
Q: Could this whale’s actions affect WBTC or BTC prices?
A: While individual whale movements can cause short-term volatility, sustained price trends depend on broader market dynamics including macroeconomic factors, institutional adoption, and regulatory developments.
👉 See how real-time on-chain analytics can help you track whale activity and make informed decisions.
Final Thoughts
The story of this WBTC whale exemplifies how strategic planning, disciplined execution, and deep understanding of DeFi mechanics can lead to extraordinary outcomes in today’s digital asset ecosystem. As Bitcoin edges closer to its all-time high and financial markets navigate evolving macro conditions, such cases provide valuable lessons in risk management, leverage usage, and profit optimization.
For investors aiming to follow smart money, monitoring on-chain activity—especially around large accumulations and gradual sell-offs—can offer critical signals about market direction.
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