Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Ethereum News Update: The Dangers of Leverage: Crypto Whale Suffers $26 Million Loss Amid Market Decline

Ethereum News Update: The Dangers of Leverage: Crypto Whale Suffers $26 Million Loss Amid Market Decline

Bitget-RWA2025/11/21 03:54
By:Bitget-RWA

- A crypto whale lost $26.348M by partially liquidating 15x leveraged BTC and 3x leveraged ETH positions amid declining prices. - The whale's $250M portfolio faces $3.734M unrealized losses if liquidated, with a $65,436 WBTC liquidation threshold. - Broader market trends show $260.66M ETH ETF outflows and ETH/BTC prices below $2,800 and $87,000, worsening leveraged traders' risks. - A HyperLiquid user lost $4.07M from a 6x ETH long position, reflecting systemic leverage challenges as macroeconomic factors

According to on-chain data, a prominent crypto whale has incurred a realized loss of $26.348 million over the past four months after partially closing out leveraged trades in

and ETH, . This development highlights the increasing instability in the crypto sector, with leveraged long positions coming under greater strain as asset values drop.

Ethereum News Update: The Dangers of Leverage: Crypto Whale Suffers $26 Million Loss Amid Market Decline image 0

This whale managed a portfolio valued at $250 million, holding 1,610.93

(with 15x leverage) and 19,894.21 ETH (at 3x leverage), . However, recent moves to reduce leverage—such as sending 150 WBTC back to Binance—point to a shift in risk strategy, . The whale currently holds 550.2 WBTC in with a stablecoin debt of $28.09 million, , illustrating the fragility of such leveraged trades.

In another case,

on a 6x leveraged ETH long, with an additional $6 million in unrealized losses, reflecting broader difficulties for those trading with leverage. These incidents mirror larger market patterns: , and ETH and BTC prices have fallen below $2,800 and $87,000, respectively.

The whale’s recent moves are part of a wider deleveraging trend in crypto. Between May and July 2025,

, at an average price of $116,593 per WBTC. The latest deposit of 150 WBTC back to Binance suggests a deliberate effort to cut risk, though to further price volatility.

Analysts point to ongoing downward pressure on crypto prices as the main reason for these losses.

, adding to investor concerns. At the same time, have led to a more cautious market mood.

This whale’s experience serves as a warning about the dangers of using leverage in a declining market. Although

, the recent steps to reduce leverage and partial liquidations show a reversal in fortune as prices stay below key thresholds. Blockchain analysts caution that further drops in WBTC or ETH could set off a chain of liquidations, .

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Stellar News Today: Established Market Prefers Altcoins with Practical Use Cases Rather Than Pure Speculation

- MoonBull (MOONBULL) raised $600,000 in funding, highlighting growing institutional interest in utility-driven altcoins with DeFi infrastructure and staking rewards. - Crypto.com's CRO token maintains stability through expanded merchant partnerships and AI-driven tools, positioning it as a "safe haven" amid market volatility. - Stellar's XLM sees renewed adoption via cross-border payment partnerships, with 20% higher transaction volumes reflecting demand for low-cost solutions in emerging markets. - Marke

Bitget-RWA2025/11/21 08:06
Stellar News Today: Established Market Prefers Altcoins with Practical Use Cases Rather Than Pure Speculation

Hong Kong Steps Up Global Stablecoin Oversight, Focuses on Competition with Tokyo

- Hong Kong regulators impose strict rules on stablecoin issuers, requiring fiat-collateralized tokens and a 25M HKD capital requirement. - Aligning with global trends, the rules aim to curb risks from algorithmic stablecoins but raise concerns about Hong Kong's competitiveness against rivals like Japan. - Japan's pro-crypto policies and incentives attract firms, while global players like Deutsche Börse integrate fiat-backed stablecoins into financial systems. - Hong Kong's framework mandates reserves and

Bitget-RWA2025/11/21 08:06
Hong Kong Steps Up Global Stablecoin Oversight, Focuses on Competition with Tokyo

Bitcoin News Update: Japan's Bond Turmoil Triggers Worldwide Crypto Sell-Off Amid Yen Carry Trade Reversal

- Japan's $135.4B stimulus package triggered a 3.41% surge in 30-year bond yields, destabilizing the $20T yen carry trade and sparking global crypto/stock selloffs. - Rising yields threaten Japan's 230% GDP debt load with higher servicing costs, creating a "debt death spiral" risk as BOJ hesitates to tighten policy. - Forced deleveraging by financial institutions intensified Bitcoin's 26% drop, with Ethereum/XRP/Solana also falling 3-5.6% amid margin calls and capital repatriation. - Upcoming 40-year bond

Bitget-RWA2025/11/21 07:50
Bitcoin News Update: Japan's Bond Turmoil Triggers Worldwide Crypto Sell-Off Amid Yen Carry Trade Reversal

Bitcoin News Today: Bitcoin ETFs See $523M Outflow as Investors Weigh Fear Against Long-Term Strategies

- BlackRock's IBIT ETF recorded a $1.26B net outflow in Nov 2025, its largest redemption since 2024 launch. - Bitcoin price fell 16% to $52, triggering $2.59B outflows across 11 spot ETFs as bearish options demand surged. - Put-call skew hit 3.1% (7-month high), reflecting heightened pessimism and capitulation pressures in Bitcoin's price action. - Gold ETFs gained $289M as investors sought safe havens, contrasting with $1B inflows to tech/healthcare sector funds. - Year-to-date Bitcoin ETF inflows ($27.4B

Bitget-RWA2025/11/21 07:50
Bitcoin News Today: Bitcoin ETFs See $523M Outflow as Investors Weigh Fear Against Long-Term Strategies