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CoinGape 2025-02-27 07:52:35

Crypto Trader Underwater $17.5M, Could Lose $25M if Bitcoin Drops Below $74k

The recent crypto market crash liquidated billions of assets, putting many investors in significant losses. One such victim is this crypto trader/whale, facing an unrealized loss of $17.5M on leverage position 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 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. This includes the millions of losses on BTC, SOL, HYPE, ONDO, HBAR, SUI, and TRUMP tokens. In 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, with a 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. Crypto Trader To Lose $25M If Bitcoin Price Crashed to $74K Amid the crypto market’s downturn, Bitcoin has been affected severely, trading at $86k after a 3% drop in the last 24 hours and 11% over the week. More importantly, the BTC price crashed to $82k earlier, bringing fearful sentiments among investors. If the downtrend continues and the Bitcoin price crashes to 74k, this crypto whale 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 increased, the trader would make millions in profit. What’s Next For this Crypto Whale? 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. Bottom Line 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 increases, the crypto whale could earn millions in losses. The post Crypto Trader Underwater $17.5M, Could Lose $25M if Bitcoin Drops Below $74k appeared first on CoinGape .

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