Introduction
According to on-chain analytics firm Spot On Chain, large BNB Chain whales seem to be executing a strategy involving longing Bitcoin while shorting native token BNB.
Whales’ Strategic Maneuvers
In the first maneuver, three whales accumulated around 144 Bitcoin BEP2 worth $3.92 million from Binance at $27,389. They then lent the bitcoin to Venus Protocol in order to borrow nearly 15,000 BNB. Finally, all of the borrowed BNB was deposited back to Binance to sell at $208 on average for $3.06 million.
Soon after, a separate whale followed the same playbook: buying $2.82 million of Bitcoin BEP2 at $27,111 on Binance, lending it for BNB on Venus, and immediately selling the borrowed 9,000 BNB at $206.10 for proceeds of $1.85 million.
Implications and Analysis
These moves illustrate savvy arbitrage in extracting value from Bitcoin’s premium over BNB. But they also appear to express a bearish BNB versus Bitcoin bias by the whales.
Taking leveraged long Bitcoin while shorting borrowed BNB capitalizes on any potential BTC outperformance. With BNB declining against Bitcoin in recent months, the whales seem to be positioning for this trend to continue.
Conclusion
Their on-chain footprints provide valuable insights into sophisticated crypto trading strategies. For broader markets, declining BNB strength could signal waning confidence in altcoins as Bitcoin reasserts dominance into year-end.
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