Having navigated the crypto market for years, I've seen many aggressive moves, but when I saw AguilaTrades' recent actions, I couldn't help but take a closer look. Just as most people were still debating whether BTC could hold the $40,000 mark, this 'leverage hunter' made $1.67 million using 25x leverage on ETH and then immediately took a long position on BTC with 40x leverage. The density of this operation and the intensity of leverage are like dancing the tango on a tightrope in the current volatile market.
Let’s break down the ‘risk code’ behind this string of numbers: what does 40x leverage mean? Simply put, if the BTC price fluctuates about 2.5% in the opposite direction (1/40), this position could trigger a liquidation. Recently, BTC has been known to fluctuate 3%-5% in a single day, in other words, the ‘margin of error’ for this long position is thinner than a sheet of A4 paper.
But the trader is not taking such risks without careful consideration. Looking back at his previous operation: a long position on ETH with 25x leverage, precisely taking profit at $1.67 million, indicates two things: either he has a very accurate judgment of market sentiment and short-term trends, or he adheres to a stop-loss discipline that is almost harsh (like using automated tools to monitor the market in real time and cutting losses immediately if it deviates from expectations). This ‘high leverage + high win rate’ model is a typical ‘blood on the knife edge’ in the crypto market. If successful, returns are geometrically amplified. If failed, profits from before could be wiped out instantly.
However, let’s be clear: this kind of operation is just for observation; ordinary people should never imitate it. The leverage in the crypto market is completely different from traditional financial leverage: there are no limits on price fluctuations, trading happens 24 hours a day, and with liquidity sometimes drying up, the risk of 40x leverage could be 10 times higher than you might think. Do you remember how many high-leverage players lost everything overnight during the LUNA collapse last year?
AguilaTrades' move seems more like a wake-up call to the current market: at a time when BTC has been stagnant for many days and the divergence between bulls and bears is intensifying, there is always capital willing to bet on direction in extreme ways. Whether this is because they truly sense a signal for an upward trend or simply a surge in risk appetite may only be validated once the market results are out.
(High leverage has never been a ‘money-making tool’ but rather a ‘risk amplifier’. This trader's actions can serve as a case study, but if you plan to copy, I suggest you first assess your own risk tolerance. After all, those who survive long in the market are often not the ones who dare to gamble the most, but those who can control risk the best.)