In an example highlighting the risks of cryptocurrency trades, a sizeable gamble on Ether has fallen through, leaving a major player known as a “crypto whale” out of pocket by more than $308 million. The anonymous trader bet heavily on a 50x leveraged Ether position – a risky move where borrowed money is used to increase the size of an investment. This particular whale got caught out when their bet didn’t pay off, and they were forced to liquidate over 160,234 Ether.
The failings of this trade were publicly viewable, thanks to data from Hypurrscan, and it was revealed that Ether was trading at $1,900 when the position was first opened. The liquidation price was just below this, at $1,877. The sharp-eyed blockchain analysts at Lookonchain discovered that this unknown trader had swapped all of his Bitcoin holdings for this high-stakes Ether bet, leading to this immense loss.
This unfortunate event occurred against a backdrop of ongoing uncertainty and volatility in both crypto and traditional markets. With tensions running high due to the EU’s latest retaliation in the ongoing global trade war, Ether’s price has fallen by over 53% from its peak in mid-December 2024. Analysts also cite a decline in activity on the Ethereum network as contributing to the significant performance downturn.
Notably, it wasn’t just Ether feeling the strain – the fear of tariffs has been having a broad impact on risk assets. Furthermore, US spot Ether exchange-traded funds (ETFs), which generally seek to track the price of Ether, could be exacerbating the issue. The data showed detrimental outflows for four consecutive weeks, with over $119 million lost in the previous week alone.
As the dust settles from this mammoth loss, the crypto community and potential investors are reminded of the volatility and risks inherent in this investment space, particularly when leveraging plays a part. As always, embarking on these investments should always take into account the potential risks and market conditions.