Specialized platforms for analyzing time series data revealed that one of the major traders suffered a severe blow in the turbulent cryptocurrency market. He undertook a series of high-risk trades that ended in heavy losses:
1. The disastrous short trade on Ethereum
- On May 19, the trader launched a counterattack on $ETH
at a level of $2,514
- Using 25x leverage, he formed a position worth 103 million USD
- The market shock came with the unexpected jump of ETH to $2,650
- The result: Forced closure with a loss of 2.46 million USD
- The bitter irony: The price dropped 8% immediately after closing the position
2. The big gamble on Bitcoin
- In a desperate attempt to compensate, he turned to $BTC
at $106,580
- With an imaginary leverage of 40x (166 BTC worth 17.6 million USD)
- The red liquidation line at $105,510 (only a 1% difference!)
- The market on the edge of a knife: Any 0.5% fluctuation is enough to liquidate the position
### Lessons Learned
- Leverage is a double-edged sword: it amplifies profits and doubles disasters
- The cryptocurrency market is unforgiving: 90% of leveraged traders lose
- Risk management is not an option: automatic stop may not save from the storm
> Experts warn that trading with leverage in these conditions is like dancing on the edge of a volcano" - A prominent analyst at CoinDesk
