Trader Faces Significant Losses Amid Volatile Cryptocurrency Market

According to PANews, a trader recently experienced substantial financial losses due to volatile market movements in the cryptocurrency sector. On May 19, the trader initiated a short position on Ethereum (ETH) with a 25x leverage when the price was $2,514, accumulating a total position of $103 million. However, as ETH's price increased, the trader was forced to gradually close the position, resulting in a loss of $2.46 million. Ironically, after the stop-loss was triggered, ETH's price declined. In a subsequent move, the trader opened a long position on Bitcoin (BTC) at a price of $106,580, utilizing 40x leverage to purchase 166 BTC, amounting to a position worth $17.6 million. The liquidation price for this position was set at $105,510. Given the high leverage, even a minor price correction in BTC could pose a significant risk of liquidation for the trader.