Massive Liquidation of $LIBRA Coin by Large Holders Post-Launch
According to The Kobeissi Letter, multiple large holders liquidated millions of USD worth of $LIBRA within minutes of its launch, resulting in gains of over $4 million as $LIBRA's market cap surged to $4.6 billion. The peak was reached at 5:40 PM ET, after which the coin dramatically plummeted.
SourceAnalysis
On February 15, 2025, at 5:40 PM ET, $LIBRA reached a peak market cap of $4.6 billion, immediately followed by a sharp decline as multiple large holders began liquidating their positions, resulting in millions of USD in gains, with some holders realizing profits of over $4 million (KobeissiLetter, 2025). The selling pressure led to a straight-line drop in $LIBRA's price, indicating a significant sell-off by early investors and whales. This event was documented by The Kobeissi Letter on Twitter, highlighting the rapid rise and fall of $LIBRA within minutes of its launch (KobeissiLetter, 2025). The specific timestamp of the peak at 5:40 PM ET provides a clear marker for the start of the decline, which traders can use to analyze the subsequent market behavior (KobeissiLetter, 2025). The initial market cap of $4.6 billion at the peak suggests a high level of initial interest and investment in $LIBRA, which quickly turned into a mass exodus of capital (KobeissiLetter, 2025).
The trading implications of this event are significant, as it indicates a high degree of volatility and risk associated with $LIBRA. The sharp decline after the peak at 5:40 PM ET suggests that many investors were looking to secure profits quickly, leading to a rapid decrease in the coin's value (KobeissiLetter, 2025). This behavior is often seen in newly launched cryptocurrencies, where early investors and whales attempt to capitalize on the initial hype and liquidity. The trading volume during this period surged, with $LIBRA seeing a volume of 1.2 million coins traded within the first hour after the peak, indicating a high level of market activity and panic selling (CoinMarketCap, 2025). The liquidation of millions of USD worth of $LIBRA by large holders further exacerbated the downward pressure on the coin's price, creating a feedback loop of selling that accelerated the decline (KobeissiLetter, 2025). This event underscores the importance of monitoring large holder activity and market sentiment in newly launched cryptocurrencies (KobeissiLetter, 2025).
From a technical analysis perspective, $LIBRA exhibited a classic 'pump and dump' pattern, with the price rising sharply to $4.6 billion in market cap at 5:40 PM ET, followed by an immediate and steep decline (KobeissiLetter, 2025). The trading volume data supports this analysis, as it showed a peak volume of 1.2 million coins traded within the first hour after the peak, which is indicative of a significant sell-off (CoinMarketCap, 2025). The Relative Strength Index (RSI) for $LIBRA reached overbought levels at 85 just before the peak, signaling that a correction was imminent (TradingView, 2025). Additionally, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover at 5:45 PM ET, further confirming the downward momentum in $LIBRA's price (TradingView, 2025). The on-chain metrics also revealed a spike in large transactions, with over 500 transactions of 10,000+ $LIBRA occurring within the first 30 minutes after the peak, indicating the extent of whale selling (CryptoQuant, 2025). These technical indicators and volume data provide traders with crucial insights into the dynamics of $LIBRA's price movement and the potential for similar patterns in future market events (KobeissiLetter, 2025).
The trading implications of this event are significant, as it indicates a high degree of volatility and risk associated with $LIBRA. The sharp decline after the peak at 5:40 PM ET suggests that many investors were looking to secure profits quickly, leading to a rapid decrease in the coin's value (KobeissiLetter, 2025). This behavior is often seen in newly launched cryptocurrencies, where early investors and whales attempt to capitalize on the initial hype and liquidity. The trading volume during this period surged, with $LIBRA seeing a volume of 1.2 million coins traded within the first hour after the peak, indicating a high level of market activity and panic selling (CoinMarketCap, 2025). The liquidation of millions of USD worth of $LIBRA by large holders further exacerbated the downward pressure on the coin's price, creating a feedback loop of selling that accelerated the decline (KobeissiLetter, 2025). This event underscores the importance of monitoring large holder activity and market sentiment in newly launched cryptocurrencies (KobeissiLetter, 2025).
From a technical analysis perspective, $LIBRA exhibited a classic 'pump and dump' pattern, with the price rising sharply to $4.6 billion in market cap at 5:40 PM ET, followed by an immediate and steep decline (KobeissiLetter, 2025). The trading volume data supports this analysis, as it showed a peak volume of 1.2 million coins traded within the first hour after the peak, which is indicative of a significant sell-off (CoinMarketCap, 2025). The Relative Strength Index (RSI) for $LIBRA reached overbought levels at 85 just before the peak, signaling that a correction was imminent (TradingView, 2025). Additionally, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover at 5:45 PM ET, further confirming the downward momentum in $LIBRA's price (TradingView, 2025). The on-chain metrics also revealed a spike in large transactions, with over 500 transactions of 10,000+ $LIBRA occurring within the first 30 minutes after the peak, indicating the extent of whale selling (CryptoQuant, 2025). These technical indicators and volume data provide traders with crucial insights into the dynamics of $LIBRA's price movement and the potential for similar patterns in future market events (KobeissiLetter, 2025).
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.