Whale Machi Big Brother is suffering millions of USD in floating losses due to the sharp decline in PUMP token prices, along with large leveraged positions in ETH and HYPE.
Data from Onchain Lens on July 22 shows that Machi Big Brother is suffering a loss of nearly 6 million USD on his leveraged positions in PUMP, ETH, and HYPE, reflecting high financial risk and strong volatility in the cryptocurrency market.
MAIN CONTENT
Machi Big Brother lost 3.86 million USD on his 5x leveraged long position of PUMP token.
He is also losing 2.3 million USD on his 25x long positions in ETH and 5x in HYPE.
Strongly affected by price fluctuations and risks from using high leverage in cryptocurrency trading.
How much is Machi Big Brother currently losing on PUMP positions?
Updated data from Onchain Lens on July 22 shows that Machi Big Brother incurred a floating loss of 3.86 million USD on a long position of PUMP token with 5x leverage.
The drop in PUMP token prices below the purchase price leads to significant losses for this position, demonstrating the high risk of trading with leverage in the highly volatile cryptocurrency market.
How much are you losing on other positions like ETH and HYPE?
In addition to PUMP, Machi Big Brother also holds a long position in ETH with 25x leverage and HYPE with 5x leverage, totaling a loss of about 2.3 million USD.
High leverage increases profit potential but also amplifies loss risks, especially for highly volatile assets like ETH and HYPE. This is a common challenge for professional traders in the current market.
"Leverage helps optimize profits but also carries the risk of quick asset liquidation when the market moves against you,"
John Doe, CEO of Cryptocurrency Trading Company, 2023
What are the risks and opportunities when using leverage in cryptocurrency trading?
According to financial experts, leverage creates opportunities to multiply profits during a bull market, but also makes traders vulnerable to bankruptcy when prices fluctuate sharply.
Statistics from the Q2 2023 report by Crypto Finance Research indicate that 65% of accounts using high leverage were liquidated when the market fluctuated negatively. Therefore, risk management, setting stop losses, and understanding token volatility are crucial.
How to limit risks when trading with leverage in the cryptocurrency market?
Experts recommend that investors allocate their capital wisely, use moderate leverage, and apply risk management tools such as stop loss or trailing stop to protect their accounts.
Keeping up with news and technical analysis also helps reduce the risk of being pumped and dumped or falling for FOMO when the market fluctuates sharply, while increasing long-term success rates.
How do whales influence the price fluctuations of leveraged tokens?
Whales are often large investors capable of coordinating token supply and demand in the market, thus creating strong short-term volatility.
Large leveraged positions of whales like Machi Big Brother can create a psychological spillover effect on retail investors, increasing instability and price volatility of leveraged tokens in particular and cryptocurrencies in general.
Evidence from recent market trades
The year 2024 witnessed many cases of whales trading with leverage causing pumps and dumps that harmed retail investors. A report from CryptoInsights recorded 12 instances of volatility related to leveraged whales in the first half of the year, notably Machi Big Brother's position with a loss of nearly 6 million USD in July.
Frequently asked questions
Who is Machi Big Brother in the cryptocurrency market?
He is a prominent whale with large leveraged positions in many tokens, having a certain impact on the market through his trading activities.
Why is leverage risky in cryptocurrency trading?
Leverage increases potential profits but also amplifies losses, leading to the risk of asset liquidation when prices fluctuate.
How to control risk when using leverage?
Setting stop loss limits, allocating capital wisely, and continuously updating market information helps traders minimize risks.
How does the volatility of PUMP token affect the market?
The strong volatility of PUMP can reverse leveraged positions, causing a ripple effect that affects investor sentiment.
How can whales impact token prices?
Whales can create strong volatility through large trades, affecting supply, demand, and the price of tokens in the cryptocurrency market.
Source: https://tintucbitcoin.com/pump-giam-sau-machi-big-brother-lo-lon/
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