The biggest whale on Bitfinex known to the Bitcoin (BTC) community as Joe007 vanished, as the cost of the height-ranked cryptocurrency by market capitalization hit $ten,000.

Joe007 left with a farewell letter on May 7 on Twitter—which tin can no longer be seen afterward he deleted his business relationship—describing his time on Twitter as an "experiment." He besides removed himself from the Bitfinex Leaderboard, no longer showing his trades and the profitability of his positions publicly.

His difference came later on a short contract he placed when Bitcoin was hovering at $half-dozen,800 hit $20 million in unrealized loss, resulting in a $15 million loss on newspaper for the whale. Joe007 realized a $5 million gain in April, reducing the full figure by 25%.

The whale said in the letter of the alphabet:

And then even though the journey was unexpectedly exciting, it has come up to its end. From the very showtime, my CT involvement was a time-express experiment since my detractors got something correct: I can't really afford Twitter. There are many reasons why I tin't stay, unfortunately.

Joe007's Twitter account before it self-destructed

Joe007'south Twitter account before it self-destructed. Source: Joe007

$60 1000000 profit and counter trader: Why Joe007's disappearance matters

Throughout the past half-dozen months, Joe007 was arguably the almost assisting Bitcoin trader in the cryptocurrency futures market.

On average, the whale recorded $ten 1000000 in gains every month, leading to a staggering $sixty million profit inside half a twelvemonth.

The Bitfinex Leaderboard was created in 2022, allowing anyone to meet the operation of traders on the exchange who list themselves on the leaderboard. Users can view weekly and monthly realized profits and unrealized losses of awaiting trades.

From September 2022 to April 2022, Joe007 realized $61 million in turn a profit. In the same period, all other whales on Bitfinex realized a $25 meg loss. Joe007 outperformed all traders listed on the leaderboard combined by $86 million.

The disappearance of Joe007 is significant because it occurred every bit before long as the six-month winning streak was broken. The whale aggressively shorted $vi,800, betting the price of Bitcoin would go downward due to low liquidity.

Joe007's Bitcoin short at $6,800 was underwater for a loss of $18.3 million

Joe007's Bitcoin brusk at $6,800 was underwater for a loss of $18.3 million. Source: Bitfinex

The philosophy of Joe007'south trading style ultimately came downward to three key data points: liquidity, buying demand and fundamental factors.

Throughout the past half dozen months, the whale often said that if the Bitcoin cost spikes to a local loftier — such as $10,000 — as a result of whales pumping the price, the lack of bodily demand to purchase at the top of the bike often leads BTC to crash.

Information technology shows ongoing Bitcoin rally is legitimate, dissimilar previous uptrends

This time, ahead of the Bitcoin halving, BTC demonstrated a unlike trend. The spot market accounted for a much larger portion of the daily Bitcoin volume. The futures market, primarily dominated by BitMEX, played a small role in leading the rally from $three,600 to $10,000.

Meanwhile, Coinbase and Binance saw record-high volumes, with Binance seeing a $23 billion daily value for its BTC-USDT trading pair. At the same time, BitMEX'due south open interest and volume struggled to recover to previous levels.

Binance sees record high spot volume

Binance sees record high spot volume. Source: Tradeblock

When Bitcoin price spikes essentially within a brusque time period, it leaves BTC vulnerable to a crash. The reason the chance of a correction increases is because the number of traders longing BTC in the marketplace rises, setting the cryptocurrency up for a long squeeze.

But, from April to May, the futures marketplace had a relatively small impact on the price trend of BTC. As such, fifty-fifty afterward a 150% rally, the risk of a Bitcoin long squeeze is not as high as seen in previous price cycles.