A well-known crypto trader suffered significant financial losses in the Ethereum market, losing almost all of his earned funds due to a mass liquidation. After successfully closing a long position that brought him a profit of $6.86 million, the trader decided to repeat the trade, but this time the market turned against him.
This is reported by Business • Media
Rapid Growth and Sharp Capital Loss
According to Lookonchain, during the sharp decline in the Ethereum price, the investor lost $6.22 million. His capital shrank from about $7 million to $771,000. At its peak, the total value of the trader’s assets exceeded $43 million, a result of four months of trading. However, in the last two days, nearly all of these gains were lost.
“The trader started with a capital of $125,000 and grew it to $6.86 million. At its peak, the total value of the assets exceeded $43 million. However, after the latest liquidation, only $771,000 remained in the accounts. Thus, nearly four months of trading were wiped out in two days,” noted Lookonchain.
Other Notable Losses in the Crypto Market
This case is not isolated in the crypto market. Previously, crypto trader AguilaTrades lost over $35 million while trading futures. In two weeks, he nearly completely lost a deposit of $39.18 million, leaving only $4.09 million in his account. Among his unsuccessful trades was the closure of a long position in Bitcoin with a loss of $12.47 million, while the expected profit could have been $5.76 million. The second position generated an unrealized profit of $10 million but ended with a loss of $2.95 million. The third long could have added another $3.2 million but resulted in a record loss of $17 million.
Another investor recently lost over $26 million in potential profits, realizing a loss of $716,000. Such cases highlight the high level of risk in the cryptocurrency market, where even experienced traders can lose significant amounts due to sharp price fluctuations and unpredictable crashes.