Cryptocurrency Trader’s Close Call with Liquidation

A cryptocurrency trader recently increased their account from $125,000 to over $43 million but faced liquidation for $6.2 million as Ether dipped near $4,000.

The liquidation occurred on the decentralized exchange Hyperliquid amidst a broader market correction, emphasizing the volatility that can catch experienced traders unprepared.

This incident followed two days after the trader secured nearly $7 million in profit. Lookonchain reported, “This legendary trader went long on $ETH again but was liquidated in the market crash, losing $6.22M.” The trader’s remaining balance is now around $771K, with four months of gains nearly erased in just two days.

Market Impact on Other Traders

Well-known leverage trader James Wynn also experienced partial liquidation of his long Ether position. Following the incident, Wynn expressed being “all-in” with no stablecoins left and indicated that he might need to reduce living expenses if an anticipated altcoin season does not materialize.

Whales React to Market Downturn

As the market turned bearish, several whales sold significant amounts of ETH. Three notable wallets sold a combined total of $147 million worth of Ethereum, with one wallet alone liquidating $77 million.

Conversely, some traders perceived the downturn as a buying opportunity, with notable acquisitions made by tracked wallets, including $3.4 million worth of Ethereum by the wallet labeled “0x159.”

Looking Ahead

Investors are now keenly focused on the upcoming monetary policy speech by US Federal Reserve Chair Jerome Powell, which is anticipated to significantly influence the crypto market.

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– Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025.
– David Bailey’s KindlyMD kicks off Bitcoin treasury with massive $679M buy.

Sources: Cointelegraph, Lookonchain, Nansen