A cryptocurrency trader recently increased their account from $125,000 to over $43 million, only to be liquidated on Wednesday due to Ethereum briefly dropping to around $4,000, resulting in a loss of $6.2 million.
Due to the price of Ethereum (ETH) nearing $4,000 on the decentralized exchange Hyperliquid, the overall market experienced a pullback. This event highlights that even experienced traders can be caught off guard by market volatility.
According to Cointelegraph, this liquidation occurred just two days after the trader turned their initial $125,000 investment at its peak into $43 million. By Monday, they had locked in nearly $7 million in profits.
Blockchain data platform Lookonchain posted on X on Wednesday: “This legendary trader went long on ETH again but was liquidated during this round of market crash, losing $6.22 million. Now only $771,000 remains—four months of gains nearly wiped out in just two days.”
The market downturn also affected other well-known traders. Million-dollar leveraged trader James Wynn's Ethereum long position was partially liquidated, leaving only $300,000 worth of ETH long position. According to Lookonchain's post on X on Tuesday, if the price of Ethereum falls below $4,113, this portion of the long position will also be liquidated.
Wynn is one of the most recognized traders in the industry, expected to see a rally in the altcoin market during this cycle.
On Wednesday, after being partially liquidated, Wynn stated that he had invested all his funds and had no remaining available capital, adding that if the altcoin market does not rally, he would be forced to significantly cut back on living expenses.
Some major whales panic-sold tens of millions of dollars worth of ETH during this market downturn.
According to Lookonchain, three large whales collectively sold $147 million worth of Ethereum, with wallet “0x1D8d” selling $77 million, “0x5A8E” selling $57 million, and “0x3684” selling over $12 million.
Meanwhile, other savvy traders viewed the market adjustment as a buying opportunity.
On Wednesday, one of the top 100 traders tracked by Nansen, wallet marked “0x159,” bought $3.4 million worth of Ethereum. In comparison, ETH whale “0x929” bought $3.16 million, and whale wallet “0x5dc” bought $2.9 million worth of Ethereum, according to Nansen data.
The market downturn even prompted wallets previously involved in the Radiant Capital attack to buy $16.6 million worth of Ethereum.
At the same time, cryptocurrency investors are focusing on Federal Reserve Chairman Powell's monetary policy speech on Friday in Jackson Hole. Nexo's chief analyst Iliya Kalchev stated that this speech will be a “key moment” for the week.
The analyst told Cointelegraph: “The next move in the crypto market may depend more on central bank signals than on technical charts.”
Related: All Roads Lead to Inflation: Whether the Fed Cuts Rates or Not, Bitcoin (BTC) May Benefit
Original article: “An Ethereum (ETH) Trader Loses $6M After an Epic Run from $125K to $43M, Almost Wiping Out Assets”
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