A cryptocurrency whale has opened $58 million in leveraged short positions on Bitcoin and Ethereum, quickly generating over $1.15 million in unrealized profit. The high-leverage trades, executed with 20x leverage, carry significant liquidation risk if prices rise, with Bitcoin’s position facing liquidation near $72,409 and Ethereum’s near $2,226.
A large cryptocurrency investor has taken notable short positions on Bitcoin (BTC) and Ethereum (ETH), totaling around $58 million. The move underlines increasing bearish sentiment among some high-value traders amid ongoing market volatility.
According to on-chain data, a wallet identified as “0x049b” opened 20x leveraged short positions on both assets. The trader shorted nearly 428.73 BTC, valued at approximately $29.6 million, and 13,852 ETH worth about $29.1 million.
The positions were executed within a short time frame, reflecting a high-conviction trade. The use of 20x leverage notably increases both potential gains and risks, making liquidation thresholds a critical factor.
Within hours of opening, the investor recorded more than $1.15 million in unrealized profit. The gains were driven by a decrease in both BTC and ETH prices after the entry point of the shorts.
Market data shows Bitcoin trading near $69,000 and Ethereum around $2,100 during this span. The rapid profitability highlights the benefit of timing in leveraged trading during volatile conditions.
Despite the early gains, the positions carry considerable liquidation risk due to the high leverage employed. The estimated liquidation price for the Bitcoin short is almost $72,409, while Ethereum’s liquidation level is near $2,226.
If prices rise above these zones, the positions could be forcefully closed, resulting in significant losses. This creates a narrow margin for error in leveraged derivatives trading.
