In the latest developments within the cryptocurrency world, a shrewd trader has managed to earn close to $16 million by taking advantage of a recent dip in the price of Ethereum. Utilizing a leveraged short position, the trader borrowed Ethereum at a higher price and repurchased it after the price fell, executing a strategy aimed at profiting from the asset’s decline. Initially, the trader opened a 50x leveraged short when Ethereum was priced at $3,388, bringing in an unrealized profit of $15.7 million, alongside an additional $2.3 million in funding fees. Though the potential for high returns exists, the risks, including possible loss of initial investments, are significant in leveraged trading.
In another segment of the crypto industry, Bitcoin’s price fell below $100,000 after U.S. President Donald Trump enacted new import tariffs affecting Canada, Mexico, and China. The tariffs—25% on imports from Canada and Mexico and 10% on those from China—have intensified existing trade tensions and led to market uncertainty. The crypto community holds divided opinions on the long-term implications of these tariffs, which might heighten inflation and shift investor focus from cryptocurrencies to more traditional assets such as bonds.
Meanwhile, El Salvador continues to expand its Bitcoin reserves by purchasing two more Bitcoins, enhancing its holdings to over 6,055 BTC, equivalent to over $612 million. This acquisition occurs despite the country’s recent decision to amend the national Bitcoin legal tender law and agree on new terms with the International Monetary Fund, which include reducing public sector involvement in Bitcoin activities and privatizing the Chivo wallet. El Salvador’s continued Bitcoin accumulation underscores its commitment to maintaining substantial reserves of the cryptocurrency.
