Bitcoin Trader Loses Nearly $567K Longing BTC/ETH to High Leverage

Renowned Bitcoin trader Andrew Kang lost nearly $567,000 in a single trading session after the exchange liquidated his BTC/ETH long positions. According to Lookonchain, a smart money on-chain analyst, Kang used up to 41x leverage on the trades, which users thought was excessive.

A screenshot of Kang’s trading activities attached to Lookonchain’s tweet revealed three highly-leveraged BTC/ETH long positions in the trades.

Out of the three, only one position was in profit. That is the 32x leveraged BTC/ETH long, which reflected a $145,528 gain at the time of the report. The other two positions, now liquidated, were leveraged at 40x and 41x and recorded respective losses of $270,763 and $295,836.

The BTC/ETH trading pair has rallied for the past ten days with no significant pullback on the daily chart. The recent uptrend started after the trading pair recorded a 12.6% crash between April 12 and April 17, 2023. Since then, the trading pair has been in an upward recovery.

BTC/ETH Daily Chart on TradingView

Kang’s trade liquidation surprised some of Lookonchain’s respondents. They believe overleveraging is the only reason behind such a significant loss under current market conditions.

While one respondent criticized Kang for not employing risk management procedures, another indicated his trading wallet had depleted from $5 million to below $1 million due to the liquidations.

At the time of writing, the BTC/ETH pair exchanged for $15.29, according to data from TradingView. This price represents an 8.82% recovery from the local low of $14.07 as the pair surges toward the yearly high of $16.12 achieved on Wednesday, April 12, 2023.

Comments

Post a Comment

Popular posts from this blog

Bitcoin, Ethereum Technical Analysis: BTC Nears $17,000 Ahead of Christmas Day

Image
Bitcoin rose closer to the $17,000 level on Saturday, despite crypto markets mostly consolidating to start the week. The global cryptocurrency market cap is down 0.32% as of writing. Ethereum was also higher earlier in the day, with prices nearing the $1,230 level. Bitcoin Bitcoin (BTC) remained under the $17,000 level to start the weekend, as prices continued to consolidate despite earlier gains. BTC/USD hit a high of $16,905.22 earlier in today’s session, which comes a day after price was at a bottom, at the $16,793.53 mark. The move saw the world’s largest cryptocurrency continue to trade above a key point of support at $16,800. BTC/USD – Daily Chart As can be seen from the chart, earlier gains have somewhat eased, as the 14-day relative strength index (RSI) failed to break above a ceiling at 48.00. The index is currently trading at 46.72, with bulls still attempting to push past the aforementioned point of resistance. On the other hand, should price stre...
Read more

Bitcoin Leads $168 Million 'Smart-Money' Outflows

Image
According to a new report by CoinShares, the digital asset industry saw a whopping $168 million worth of out flows over the last week, with Bitcoin (BTC) leading the pack. This represented the highest out flows from the sector “since the US regulatory crackdown on exchanges in March 2023.” According to CoinShares, BTC was at the center of the out flows , with $149 million. Ethereum (ETH), on the other hand, saw out flows worth $16.8 million. On a month-to-date basis, Bitcoin saw out flows of $251.2 million, while Ethereum saw out flows of $29.8 million. The total out flows for the month of August now sit at $278 million. Meanwhile, XRP and Litecoin (LTC) saw minor in flows of $0.5 million and $0.44 million, respectively. Also Read: Argentina is Adopting Bitcoin Faster than El Salvador: Ark Invest However, the report noted that fund flows remain positive for BTC on a yearly basis, with $265 million. Source: CoinShares Additionally, CoinShares mentioned tha...
Read more

Kraken Persists With Plans to Launch Its Bank Despite Facing Regulatory Obstacles

Image
Join Our Telegram channel to stay up to date on breaking news coverage Kraken crypto exchange is still working on launching its bank, despite the challenging regulatory environment and the recent shutdown of its on-chain staking services for U.S customers The Securities and Exchange Commission (SEC) had accused Kraken of violating securities laws. Nonetheless, Kraken remains steadfast in its commitment to its plans. Kraken’s chief legal officer, Marco Santori, confirmed on The Scoop podcast with Frank Chaparro that the company is on track to launch its own bank. He also shared that Kraken plans to order thousands of pens with little ball chains and their logo to distribute to Wall Street banks. Despite obstacles, Kraken continues to move forward with its plans to establish its financial institution. #Kraken continues its plan to launch its own bank despite a difficult regulatory environment. "Kraken Bank is on track to launch very soon," said Marco Santori, Krak...
Read more