If Ethereum Breaks $2000, Mainstream CEX Cumulative Short Liquidation Pressure Will Reach $423M

On February 20th, analyst Darkfost noted that Ethereum’s ongoing pullback has put significant pressure on holders—all whale cohorts are currently sitting on negative unrealized profit/loss (P/L), a historical pressure state that often signals a mid-term bottom. Key details: - 1k–10k ETH holders: Unrealized P/L = -0.21 - 10k–100k ETH holders: Unrealized P/L = -0.18 - 100k+ ETH holders: Unrealized P/L = -0.08 Darkfost added that the trend is surprising because Ethereum’s price hasn’t even retraced to its low from last April. If ETH continues to decline, these mega-whales could face serious trouble, potentially being forced to capitulate and offload their large ETH holdings.

As of February 20, on-chain analytics firm Glassnode reports Bitcoin is trading around the $67,000 level, with unrealized losses within this price range representing roughly 19% of the crypto’s total market capitalization. Current market volatility mirrors the market structure observed in May 2022.

February 20th: Data from Coinbob Popular Address Monitor shows that in the past half-hour, the DeFi whale address "pension-usdt.eth" has closed all its BTC long positions, realizing approximately $994,000 in profit with an average closing price of around $68,000. The address opened its position yesterday evening when BTC was trading at roughly $66,500, holding 1,000 BTC (valued at about $68 million at the time). This whale typically employs a low-leverage, short-term strategy (average holding period of ~30 hours) and focuses on heavy positions in BTC and ETH. Since last October, its cumulative profit has exceeded $23 million. Recently, the address has been continuously moving significant profits from Hyperliquid into the yield farming market; its total lending on AAVE now stands at approximately $22 million.

On February 20th, UniCredit strategist Thomas Strobel noted that Bitcoin’s recent decline primarily reflects weak market sentiment and macro pressures—even as U.S. regulatory concerns ease and policy risks diminish. The bank currently maintains a neutral stance, pegging Bitcoin’s fair value at roughly $75,000. A roughly 35% drop from that level—especially if Bitcoin stays below $50,000 for a sustained period—could signal a deeper structural shift. For a rebound to materialize, market sentiment would need to improve, ETF inflows to rise, and liquidity conditions to strengthen.

Feb. 20 — Per Onchain Lens monitoring data, BlackRock transferred 2,563 Bitcoin (BTC) worth $172.94 million and 49,852 Ethereum (ETH) worth $97.19 million to Coinbase, with potential for additional transfers going forward.

February 20 — Dozens of Democratic U.S. House members sent a letter to Treasury Secretary Janet Yellen on Thursday, calling for an investigation into potential conflicts of interest and national security concerns tied to the Trump family’s cryptocurrency project, World Liberty Financial, per CNBC. Led by New York Democratic Rep. Gregory Meeks, the letter has 40 additional co-signatories. During a hearing, Meeks referred to Yellen as a “henchman” of Trump’s and questioned a $500 million investment in World Liberty Financial last year from a member of the UAE royal family. In a statement accompanying the letter, Meeks said: “The Trump family’s $500 million transaction with the UAE royal family is not only a matter of national financial stability, but also carries serious national security implications.” At the time of the request, World Liberty Financial was in the process of applying for a national bank charter — a document reviewed and issued by the Office of the Comptroller of t