AguilaTrades just added another 1,000 Bitcoin at the beginning of the morning session but cut its position in half due to the price drop, currently holding 3,000 BTC with 20x leverage.
AguilaTrades' position reached a peak profit of 41.7 million USD, but now only remains at 17.07 million USD. With an opening price of 111,713 USD and a liquidation point of 112,108 USD, the total position value reaches 352 million USD.
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AguilaTrades increased 1,000 BTC in the morning session but quickly reduced its position as the Bitcoin price fell.
Position profit decreased from 41.7 million USD to 17.07 million USD amidst market volatility.
The opening position price is 111,713 USD with liquidation at 112,108 USD, indicating high risk due to 20x leverage.
Why did AguilaTrades increase and decrease its Bitcoin position on the same day?
The decisions to buy an additional 1,000 BTC and then reduce the position demonstrate AguilaTrades' quick reaction to strong market fluctuations. Expert Yu Jin stated that the position reduction aims to limit losses as the Bitcoin price declines.
In this highly volatile market, risk management and timely position adjustments are crucial to protect profits.
Yu Jin, cryptocurrency analyst, 15/07/2024
How does AguilaTrades maintain its BTC position with 20x leverage?
AguilaTrades currently holds a Long position of 3,000 BTC, with a total value of 352 million USD at a leverage ratio of 20x. The opening price of the position is 111,713 USD, while the liquidation price is only slightly lower at 112,108 USD, indicating high risk when prices fluctuate unfavorably.
According to analysis, high leverage amplifies profits but also poses the risk of significant losses, especially when the cryptocurrency market is highly volatile as it is now.
How does the decrease in position profit affect AguilaTrades?
During the day, AguilaTrades' position profit peaked at 41.7 million USD but now only stands at 17.07 million USD, reflecting the impact of the Bitcoin downtrend. This move indicates that early adjustments are necessary to minimize losses in a volatile market.
Mastering entry points, exit points, and the ability to react quickly is key to maintaining sustainable profits in any volatile environment.
David Chen, CEO of the cryptocurrency investment fund, 2024
Risk analysis when using high leverage in cryptocurrency trading
Leverage of up to 20 times helps increase profit potential but also makes investors more likely to get liquidated if the market goes against predictions. According to the 2023 report from the Global Finance Institute, over 60% of high-leverage positions were liquidated when fluctuations exceeded 5% in a day.
Criteria 5x Leverage 20x Leverage Potential Profit 5 times capital 20 times capital Liquidation Risk Lower, 20% volatility Higher, 5% volatility Required Liquidity Lower Higher, requires more reserve capital
What impact does AguilaTrades' position have on the Bitcoin market?
According to on-chain data, whales like AguilaTrades can significantly impact liquidity and Bitcoin price volatility. Buying or selling large amounts of BTC can create short-term Pumps or Dumps.
Veteran trader Linh Tran stated, "Whale movements like AguilaTrades are always closely monitored by the community due to their significant impact on price trends."
Frequently Asked Questions
Who is AguilaTrades in the cryptocurrency market? AguilaTrades is a major influential trader in the cryptocurrency market, often using high leverage to optimize profits. Is 20x leverage safe? 20x leverage poses high risk due to the potential for liquidation when prices fluctuate slightly, suitable only for experienced investors. What is the liquidation price and why is it important? The liquidation price is the price level at which a position must be closed to avoid further losses, very important when using high leverage for risk management. Why do profits fluctuate greatly during the day? Profit fluctuations depend on the cryptocurrency market price, especially with large positions and high leverage; even small price changes can have a significant impact. What is the impact of Bitcoin whales on the market? Bitcoin whales can create significant price fluctuations when buying or selling large amounts, having an immediate effect on the spot market and investor sentiment.
Source: https://tintucbitcoin.com/bitcoin-don-bay-aguilatrades-giam-manh/
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