Bitcoin whale AguilaTrades is suffering large losses from a 40x leveraged long position.
MAIN CONTENT
AguilaTrades' 40x leveraged Bitcoin long position suffered significant losses.
AguilaTrades lost up to $39.98 million, leaving only $73,000 in the wallet.
Data identified from Onchain Lens on August 3rd.
Why is a 40x leveraged Bitcoin long position highly risky?
40x leverage increases potential profits but also carries significant risk if prices move in the opposite direction.
AguilaTrades took a long position in Bitcoin with 40x leverage, resulting in a massive loss of $12,000 on this position when the market moved unfavorably. High leverage amplifies losses and can lead to rapid liquidation when prices fall.
In the case of this whale, the wallet balance sharply decreased to only $73,000, demonstrating that excessive leverage can easily lead to total capital loss, especially in the highly volatile cryptocurrency market.
What does Onchain Lens data mean in assessing losses?
Onchain Lens provides deep and transparent analysis of on-chain whale transactions, helping to verify losses and actual balances at any given time.
Data recorded on August 3rd shows that AguilaTrades lost up to $39.98 million through the leveraged long Bitcoin position. This is a reliable information source for analyzing risks and the actions of major investors in the cryptocurrency market.
This level of loss clearly reflects extreme volatility and the impact of financial leverage on the Bitcoin market.
"Using excessive leverage in Bitcoin trading can quickly turn an account into a negative balance when the market sharply reverses."
Financial expert Nguyen Thanh Binh, 2024
A warning from the case of whale AguilaTrades for cryptocurrency investors
The case of AguilaTrades is a testament to the risk of losing all capital when using excessive leverage in the cryptocurrency market.
Investors need to be cautious with this method, carefully considering risks and should not invest more than their risk tolerance to avoid severe consequences.
Leverage should be used wisely, with a clear risk management plan to protect the portfolio from extreme price fluctuations.
Frequently Asked Questions
1. How risky is 40x leverage in Bitcoin trading?
40x leverage increases profit levels but also amplifies losses, potentially losing all capital quickly when the market moves against.
2. What data sources help track Bitcoin whale activity?
Platforms like Onchain Lens provide transparent on-chain data about transactions and whale wallet balances, aiding in the accurate assessment of major market activities.
3. How can investors mitigate risks when using leverage?
Applying strict risk management, limiting excessive leverage, and closely monitoring price fluctuations can help minimize capital losses due to leverage.
4. How is the loss of $39.98 million calculated?
Based on on-chain data from Onchain Lens, the total loss on AguilaTrades' leveraged long Bitcoin position is determined to be $39.98 million.
5. How reliable can on-chain data be?
On-chain data provides transparent and direct information from the chain, often used by analysts and institutions to assess market activity.
Source: https://tintucbitcoin.com/ca-voi-bitcoin-aguilatrades-lo-12-000-usd/
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