A cryptocurrency whale account was liquidated with losses reaching millions of USD in a short time, reflecting the high risks from large leveraged orders in the market.
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The cryptocurrency whale was liquidated for over 19,556 ETH and 2,404 BTC, losing 3.855 million USD on the morning of July 3.
The total liquidation loss in 24 hours reached 10.75 million USD.
The account currently holds a position of 40x short BTC and 25x short ETH with a value of approximately 43.65 million USD.
How much did the cryptocurrency whale account lose in this round of liquidations?
The liquidation event occurred from 00:05 to 03:00 on July 3, with a large amount of ETH and BTC being dumped, causing the account to lose approximately 3.855 million USD in value.
The information is confirmed through monitoring data from expert Ai Yi, reflecting the volatility and potential risks when trading with high leverage. This is one of the largest liquidations in the past 24 hours, contributing to the total account loss of up to 10.75 million USD.
"The liquidation of high-leverage positions, as in this case, is a clear demonstration of the strong volatility and high risks present in today's cryptocurrency market."
Ai Yi, Cryptocurrency Monitoring Specialist, 3/7/2024
What is the remaining position of the whale account after liquidation?
After the liquidation, the account still holds a significant position with a total value of approximately 43.65 million USD, consisting of 237.25 BTC and 6,948.14 ETH in short positions with leverage of 40x and 25x respectively.
The opening prices for these positions are 106,697.3 USD for BTC and 2,452.03 USD for ETH, indicating that these are high-risk trading decisions, providing opportunities but also posing significant loss risks if prices move in the opposite direction.
The significance of high-leverage short positions for the cryptocurrency market
Shorting BTC and ETH with extremely high leverage can make price fluctuations more complex due to increased liquidation pressure. Especially with whale accounts, these moves can indirectly affect liquidity and market sentiment.
What are the lessons from this whale liquidation event?
This event highlights the importance of risk management and choosing appropriate leverage when participating in the cryptocurrency market. Experts always advise investors to avoid over-leveraging to reduce the risk of sudden liquidation during strong price fluctuations.
"The key to long-term survival in the cryptocurrency market is managing a reasonable leverage ratio and always being well-prepared to respond to volatility."
John Mayer, CEO of a cryptocurrency financial company, 2023
Frequently Asked Questions
What is liquidation in cryptocurrency trading? Liquidation is when the exchange automatically closes a position when the account lacks sufficient collateral due to excessive losses, especially with high-leverage orders.
Why can high-leverage whales pose risks? High leverage increases potential profits but also accelerates losses, easily leading to liquidation that causes strong market fluctuations.
Should beginners trade with leverage? New investors should limit or avoid using leverage to minimize the risk of losing capital due to strong price fluctuations.
What is a short position and what is its impact? A short position is selling an asset with the expectation that the price will fall; however, when the price rises, it can lead to significant losses, especially when using leverage.
How to avoid account liquidation? Effective risk management, choosing moderate leverage, and regularly monitoring market fluctuations can help reduce the risk of liquidation.
Source: https://tintucbitcoin.com/ca-voi-eth-btc-mat-lon-24h/
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