A high-profile cryptocurrency trader lost over $308 million in a leveraged Ether trade, marking one of the largest liquidations in recent months. The trader, identified only by their blockchain address, saw their 50x leveraged long position wiped out as Ether prices dipped below a critical threshold.
Blockchain analytics firm Lookonchain reported that the trader had initially switched their Bitcoin holdings into Ether before placing a high-risk bet on a price increase.
The whale’s position ballooned to 160,234 Ether, valued at approximately $308 million at the time of liquidation. Hypurrscan data confirmed that the liquidation price was $1,877 per ETH, just below the trader’s entry point of $1,900.
Leveraged Trading Risks Magnify Losses
Leverage allows traders to control large positions with borrowed funds, amplifying potential gains and losses. The 50x leverage on this trade meant that even a slight downward movement in Ether’s price could trigger liquidation. Once the price fell below $1877, the trader’s position was forcibly closed, erasing all invested capital.
The liquidation occurred amid increased volatility in the crypto market, driven by macroeconomic concerns and declining investor confidence in Ether. Bitfinex analysts attributed Ether’s broader downtrend to high transaction fees and slowing developer activity on the Ethereum network.
The forced liquidation coincided with a period of negative sentiment in both crypto and traditional markets. Recent tariff disputes between the European Union and major global economies have contributed to a risk-off environment, impacting digital assets alongside equities.
Adding to the pressure, Ether’s price has dropped by 53% since its December 2024 peak above $4,100. This decline has been exacerbated by sustained outflows from U.S. spot Ether exchange-traded funds (ETFs). Data from Sosovalue shows four consecutive weeks of net outflows, totaling $119 million in the prior week alone.
