Whale Trading with cbBTC and ETH: Detailed Profit and Loss Analysis
According to data from Ember, a cryptocurrency whale swapped 220.1 cbBTC, equivalent to about 20.81 million USD, for 6,202.4 ETH at the beginning of the year at an exchange rate of 0.0354. At that time, the price of BTC was valued at 94,548 USD and ETH at 3,355 USD.
If this address has held its assets from that time until now, the value of BTC would have increased to about 23.72 million USD. Meanwhile, the current value of ETH is only 15.35 million USD, meaning an unrealized loss of up to 8.37 million USD.
New Band Trading Strategy Causes Losses Over 6 Billion VND
Notably, this address recently started a new band trading cycle. Four days ago, the whale sold 3,158 ETH at a price of 2,378 USD/ETH, in exchange for about 7.51 million DAI.
Just three hours later, this DAI was used to buy back 3,053 ETH at a price of 2,460 USD/ETH. This turnover resulted in a net loss of 105 ETH, equivalent to nearly 260,000 USD – a significant short-term loss.
Impact of ETH Price Volatility on Leverage Trading
ETH price fluctuations have a profound impact on profits and risks when using hedging strategies like band trading. The alternating buying and selling within the price range causes losses due to spreads and transaction fees, especially when prices are highly volatile.
Maintaining a leverage strategy must be accompanied by a thorough understanding of market volatility as well as the liquidity of the cryptocurrency being traded.
Conclusion: Evaluating Profit and Risk from Cryptocurrency Asset Swaps
Analysis from the above whale case shows that swapping between major cryptocurrencies like cbBTC and ETH carries considerable price volatility risk. Although BTC's value tends to increase, ETH is under downward pressure, causing the total asset portfolio value to potentially turn negative without an effective risk management strategy.
The band trading strategy also carries significant losses, requiring investors to make careful calculations before execution. Closely monitoring price fluctuations and technical analysis is essential to optimize profits in the highly volatile cryptocurrency market.
Source: https://tintucbitcoin.com/ca-voi-crypto-lo-837-trieu-usd/
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