Crypto Trader Portfolio in Jeopardy, Loses $17.5M in Crypto Market Crash

According to the on-chain analytic platform Lookononchain X post, the crypto trader faces an unrealized loss of $17.5M, consisting of multiple leverage positions on various cryptocurrencies.

The recent crypto market crash has liquidated billions of assets, leaving many investors nursing significant losses. One such victim is this crypto trader/whale, who is currently facing an unrealized loss of $17.5M on leverage positions in various cryptocurrencies.

However, that is not all, as the struggling Bitcoin (BTC) performance is putting it at higher risk, where if the price drops to $74k, the trader’s loss will exceed $25M.

Crypto Trader Faces $17.5M Loss in Multiple Coins After Market Crash

According to the on-chain analytic platform Lookononchain X post, the crypto trader faces an unrealized loss of $17.5M, which consists of multiple leverage positions on various cryptocurrencies. This includes the millions of losses on BTC, SOL, HYPE, ONDO, HBAR, SUI, and TRUMP tokens.

Out of this, the largest loss is on the BTC and SOL amid the crypto market crash. The trader went for a $23.69M position on Bitcoin, with an entry price of $102,079.2, having 10x leverage. In the case of Solana, the trade went for a $6.15M position, 20x leverage at the entry of $235.18, facing massive declines due to exposure to leverage positions in unfavorable scenarios.

With a few more such positions, the trader bears a staggering $17.5M in unrealized losses, which could worsen with a further price crash.

Bitcoin Price Could Bring More Loss to Crypto Trader

The post further stated that if the Bitcoin price drops to $74k, this crypto trader could lose $25M as it is dangerously close to massive liquidation with a margin usage at 80.92%. As the trader’s perp equity is the total balance, the loss would come to $25M ($17.5M + $7.4M).

However, if the BTC’s value remained maintained at the current level or increased, this cascading liquidation would not occur. Instead, if the price went up, the trader would make millions in profit.

What’s Next For This Crypto Trader?

The current market situation shows high volatility, with investors’ sentiments indicating a bear’s dominance. This crypto investor’s fate entirely depends on Bitcoin’s next move. A crash would result in a massive $25M loss.

Some Bitcoin price predictions show signs of a further crash to $70k, increasing the possibility of liquidation. However, things could take a different turn, as some analysts believe the price will rebound above $100k.

For now, it is uncertain whether the whale will face further liquidation or profits.

The aforementioned crypto trader and its massive liquidation loss reveal the risk of excessive leverage. In this crypto market, unpredictability can divert everything from millions in losses to millions in profits or vice versa. The trader could lose $25M altogether if the BTC price dropped to $74K. However, in contrast if the price went up, the crypto whale could earn millions in losses.

Frequently Asked Questions (FAQs)

1. Why is this crypto trader facing a $17.5M loss?

2. What will happen if Bitcoin price drops to $74k?

3. Is there a possibility of recovery?