After gold fell below $4,800, this whale closed a position in PAXG and made $675,000.

2026-01-22 05:55:37

The on-chain gold largest long whale acted decisively during the gold price correction. On January 22, this trader, known for holding the largest PAXG (on-chain gold token) position on Hyperliquid, fully closed their 5x leveraged PAXG long position at an average price of $4,865, locking in a profit of $675,000. From establishing the position on January 2 at $4,415 to closing today, this trade spanned 20 days and witnessed gold retreat from its all-time high to below $4,800.

Gold correction triggers take-profit, whale’s risk management awareness

Complete trading cycle

According to relevant information, this whale’s PAXG long position went through three distinct phases:

January 2: Opened a 5x leveraged long at an average of $4,415, with a position size of approximately $7.3 million
January 20: Gold broke through $4,890, hitting a new all-time high, with an unrealized profit of $50,000; partial take-profit of $33,000
January 22: Gold briefly dipped below $4,800, fully closed the remaining long position, ultimately earning $675,000

The trading logic is clear — take partial profit at the new high, and exit completely when a price correction threatens to erode gains.

Why choose to close at this point

According to quick news, gold briefly fell below $4,800 last night and this morning, which is an important signal for a 5x leveraged long position. Although the $7.3 million position size isn’t extremely leveraged relative to total account funds, a break below a key psychological level in a relatively stable asset like precious metals often indicates a potential short-term trend reversal. The whale’s decision to close at this moment reflects risk sensitivity — not greed at the high, but timely profit-taking when a correction risk appears.

Capital shift: from gold longs to US stocks and precious metals futures

Post-close capital allocation

After closing the PAXG long, this whale didn’t idle with the funds but quickly shifted into other assets, increasing their positions significantly:

Asset	Leverage	Position change	Current status
XYZ100 (Nasdaq 100 proxy)	10x	$14.8M → $20.56M	Unrealized loss of $3,600
COPPER (Copper futures proxy)	10x	$5.84M → $11.6M	Unrealized loss of $17,600

This shift is interesting. The whale transitioned from a single gold long to simultaneously long US stock tokens and precious metals futures proxies. It’s not just a change in asset classes but also a risk adjustment — moving from relatively stable precious metals to more volatile US stocks and other metals.

Overall account allocation

Based on quick news data, the current full position of this address is:

Total account value: over $5 million
Total position size: $38.8 million
Main holdings: XYZ100 ($20.56M), COPPER ($11.6M)
Identity/status: one of the largest on-chain holders of PAXG and COPPER

This account is no longer just a “largest gold long.” More accurately, it’s a high-leverage, multi-asset speculative account focused on on-chain US stock tokens and precious metals futures contracts.

Market background: why did gold correct

Complete background on price fluctuations

From available info, gold hit a record high of $4,890 on January 20, but by January 22, it fell below $4,800. The $20+ fluctuation in gold isn’t large in absolute terms, but under 5x leverage, it’s enough to trigger risk alerts.

This correction may be related to multiple factors: dollar strength, US stock rally suppressing safe-haven assets, or simply technical profit-taking. But for on-chain traders, the specific reason is less important than “where the price is.”

Summary

This whale’s trading decisions demonstrate several noteworthy characteristics:

Clear risk awareness: taking partial profit at new highs, fully exiting on correction to avoid greed-driven losses
Flexible capital allocation: quickly shifting from a single gold long to a combination of US stocks and precious metals futures, showing proactive account management
Consistent high leverage style: moving from 5x leverage in gold to 10x in US stocks and copper futures, indicating a high-risk appetite speculative approach
Scale continuously expanding: total holdings grew from around $20+ million to $38.8 million, with ongoing position increases

While the $675,000 profit isn’t huge, from a trading management perspective, it reflects relatively rational risk control among high-leverage on-chain traders. In the crypto derivatives market, timely profit-taking often outweighs chasing maximum profits.

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