Bitcoin and Ethereum whale @qwatio has had their entire Short position liquidated, suffering losses of up to 17.89 million USD.
According to records from Onchain Lens, this whale has lost all Short positions at 40 times on Bitcoin and 25 times on Ethereum, with a total cumulative loss now reaching 16.72 million USD, highlighting the significant risk of trading with high leverage in the cryptocurrency market.
MAIN CONTENT
Whale @qwatio has been liquidated on Short positions for BTC and ETH with a high leverage ratio.
The total asset loss for this whale amounts to nearly 17 million USD.
The event reflects high risks from using large leverage in the cryptocurrency market.
How much money has whale @qwatio lost due to the liquidated Short position?
Official information from the Onchain Lens platform shows that whale @qwatio suffered a loss of nearly 17.89 million USD due to the liquidation of Short positions using 40x leverage on Bitcoin and 25x on Ethereum.
This was confirmed in the report dated July 11, highlighting the enormous risk levels when trading with high leverage in the volatile cryptocurrency market.
"Using excessive leverage not only increases the potential for profit but also exposes investors to the risk of rapid capital loss if the market moves against expectations."
Nguyen Van An, Director of Financial Risk Analysis, 2024
How does high leverage affect the asset volatility of whales?
A 40x leverage on BTC and 25x on ETH means @qwatio only needed a small adverse price movement to have their entire position liquidated.
Expert experience from CEOs of cryptocurrency asset management companies shows that high-leverage trading can easily lead to significant losses in rapidly changing market conditions, especially when applying Short positions during a Bull market.
The impact of mass liquidation on the market
Large position liquidations from whales can disrupt liquidity and trigger short-term price fluctuations.
For example, a report from a cryptocurrency research organization in 2023 indicated that when a whale is liquidated, it often triggers a chain selling effect that negatively impacts the overall market.
How can investors learn from this event?
Risk management experts recommend that investors limit leverage to 5-10 times, diversify their portfolio, and set reasonable stop-loss orders to protect capital.
Practical experience from professional traders indicates that effective risk management is the key factor for long-term survival in the volatile cryptocurrency market.
"Intelligent asset management and risk control are the keys for investors to avoid major shocks from the highly volatile market."
Le Thanh Binh, CEO of the digital financial investment company, 2024
Frequently Asked Questions
What is position liquidation? Position liquidation occurs when the account cannot withstand leverage due to adverse price movement, leading to a total or partial loss of capital. (Source: Trading Expert 2024) Why is high leverage risky? High leverage increases profit/loss on every small price movement, significantly increasing the risk of quick capital loss. (According to the Risk Management Report 2024) How to avoid liquidation when trading cryptocurrencies? Limit leverage, diversify portfolios, set stop-loss orders, and closely monitor the market to minimize risk. (Source: Financial Expert 2024) How does whale liquidation affect the market? Large position liquidations create strong selling pressure, pushing prices down quickly and increasing temporary market volatility. (According to market analysis in 2023) Who are cryptocurrency whales? Whales are investors holding large amounts of cryptocurrency, which can impact market prices when making large trades. (Source: Blockchain Analysis 2024)
Source: https://tintucbitcoin.com/ca-voi-bitcoin-ethereum-lo-1789-trieu/
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