A major player in the cryptocurrency market, often referred to as a “whale,” faced a significant financial setback, losing over $308 million due to a leveraged trade involving Ether. This event highlights the inherent risks tied to leveraged trading when markets are unstable.
The anonymous trader’s position involved a 50x leverage on approximately 160,234 Ether, valued at more than $308 million at the time of the liquidation. Data from Hypurrscan confirms the magnitude of this loss. Leveraged trading involves borrowing funds to increase investment size, which can amplify both potential gains and losses, making it considerably riskier than standard trading practices.
The transaction records from the trader’s address, as revealed by Hypurrscan, show that the initial leveraged position was established when Ether was trading at $1,900, with a liquidation threshold set at $1,877.
Further insights from onchain analysis firm Lookonchain indicate that prior to the liquidation, the trader had converted their entire Bitcoin holdings into the leveraged Ether position. The liquidation coincided with a period of increased market volatility, driven by global trade tensions and retaliatory tariffs from the European Union, impacting both cryptocurrency and traditional financial markets.
Ether itself is experiencing a downward trend, having fallen over 53% since peaking above $4,100 in mid-December 2024. Several factors, including macroeconomic pressures and a lack of new project developments on the Ethereum network, have been cited by Bitfinex analysts as reasons for the decline. High operating fees are deterring new projects from launching on the Ethereum network, leading to a subdued performance of Ether.
The analysts anticipate that Ether could face further corrections, potentially risking a decline to $1,800, amid ongoing tariff-related fears and outflows from Ether exchange-traded funds (ETFs) in the US. These ETFs have encountered a fourth consecutive week of net negative outflows, totaling over $119 million in recent weeks, as reported by Sosovalue data.
Overall, these developments underscore the broader market’s sensitivity to geopolitical and economic factors, with cryptocurrencies like Ether facing headwinds amid global uncertainties.
