Why did this giant whale's altcoin long positions suddenly cut losses after dropping from a high of $3.3 million to $1.04 million?

A whale who invested $8 million to go long on altcoins a month ago is now accelerating to close positions and cut losses. According to the latest news, the account’s unrealized gains have shrunk from $1.75 million on January 8 to $1.04 million, halving from the peak unrealized profit of $3.3 million. However, during this process, the whale also secured nearly $1 million in profits by precisely closing positions to lock in most of the gains.

Unrealized gains shrink by 66%, what happened to the whale’s altcoin longs

The investment journey of this whale address can be described as a “rollercoaster”:

This means that within just two days, the whale lost $2.26 million in unrealized gains. But the key point is, the whale was not trapped; instead, it actively closed positions to realize most of the profits.

Precise stop-loss strategy: 6 tokens closed, nearly $1 million profit

The list of closed positions reveals the whale’s market judgment:

Profitable closures (total profit $990,000):

• MON: $400,000 profit (the largest profit source)
• PUMP: $370,000 profit
• STABLE: $140,000 profit
• AIXBT: $80,000 profit

Loss-making closures (total loss $10,800):

• FARTCOIN: $3,800 loss
• TRUMP: $7,000 loss

Why were these tokens closed first?

From related information, MON’s performance is particularly noteworthy. Launched in July 2024, this token has a market cap of about $270 million but has been continuously declining—down 13.5% over 7 days and 5.25% in 24 hours. MON has fallen from a high of $0.02861 to $0.02499, with a daily drop of over 9%.

The whale chose to close the $400,000 profit on MON, indicating a clear awareness of altcoin risks. This “take profits when things look good” strategy is especially wise in the current highly volatile altcoin market environment.

Remaining 11 altcoin longs face pressure, market risk signals are clear

Currently, the whale still holds long positions in 11 altcoins, with unrealized gains remaining at only $1.04 million. This implies:

• The unrealized gains of the remaining positions have significantly shrunk, and risk resistance has decreased
• If the market continues to decline, the $1.04 million unrealized profit could turn into a loss at any time
• The whale may continue to close positions to lock in profits further

Looking at MON’s trend, the market’s bearish sentiment continues to dominate. Once considered a “national altcoin,” it is now experiencing persistent downward movement, reflecting the current pressure on the entire altcoin sector.

Summary

This whale’s operation process is essentially a full demonstration of the characteristics of the altcoin market: high returns come with high risks. From initial position building to a peak unrealized profit of $3.3 million, and now actively closing positions to realize nearly $1 million, the whale shows respect for risk. Especially by choosing to close positions in batches at the peak unrealized gains rather than greedily adding more, this discipline is noteworthy.

For altcoin investors, this case offers a clear lesson: when unrealized gains are substantial enough, taking profits promptly is often wiser than holding on. The volatility of altcoins means they can both rapidly appreciate and quickly depreciate, and the whale’s stop-loss actions exemplify this well.