According to Lookonchain, a major investor has opened a $332 million short position in Bitcoin. Let's break down the details and risks of this trade.
Deal Details
The investor opened the position with an entry price of $84,040, utilizing 40x leverage. This means the trader borrowed 40 times the initial capital. Currently, Bitcoin is trading at $83,945, showing a 2.3% decline over the past week.
Risks and Reactions
The high leverage dramatically increases the risk of liquidation. If Bitcoin's price rises to $85,000, the position will be liquidated. On Hyperliquid, the trader has previously made $16.39 million in a month, sparking discussions among X users.
Market Situation
CoinGlass data shows that $94 million worth of crypto has been liquidated in the last 24 hours, with shorts comprising the majority—$49 million. The largest single liquidation occurred on Binance at $582,130. Overall, more than 65,000 traders have been liquidated in this timeframe.
Using high leverage involves significant risk, and such a strategy might lead to substantial losses. The market remains tense as liquidations continue.
