Over the past week, one trader experienced significant losses in the crypto market, being liquidated eight times, resulting in total losses of $12.5 million.
Trader's String of Liquidations
The latest liquidation occurred on Monday when the trader took a 25x leveraged position on Ethereum. ETH has struggled to hold near $2450, with the trader's new liquidation price set at $2534, dangerously close to recent price levels. A similar fate has befallen their Bitcoin trade, now threatened at $109,170.
Risks of High Leverage
Just days earlier, Lookonchain reported six liquidations in under 72 hours for the same trader. Despite a profitable streak in March, which included winning positions on ETH and BTC, trader qwatio's recent trades have taken a downturn.
Successful Alternative Trader
While one trader is suffering tremendous losses, another has quietly turned $6,800 into $1.5 million by contributing over 3% of maker-side liquidity on a major exchange, clocking $1.4 billion in trading volume over two weeks.
In the world of cryptocurrency, fortunes can swing quickly, and not always in favor of traders. Cases like these illustrate the high risks associated with trading in the market.
