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Ethereum News Update: The Risks of Leverage Revealed—$1.2 Billion in Major Investor Losses Highlight Market Vulnerability

Ethereum News Update: The Risks of Leverage Revealed—$1.2 Billion in Major Investor Losses Highlight Market Vulnerability

Bitget-RWA2025/11/07 01:44
By:Bitget-RWA

- A top crypto whale's 100% win streak ended with $19.63M loss on BTC/ETH longs, exposing leverage risks in volatile markets. - High-leverage strategies backfired as $1.2B in whale positions liquidated, with longs accounting for 91% of losses. - Ethereum's 9% drop and Bitcoin's 4.63% decline highlight fragility, as whales adjust positions amid shifting liquidity. - Analysts warn whale behavior reflects investor uncertainty, with some doubling down on leveraged bets despite $31M+ monthly losses. - The crisi

The cryptocurrency sector's most renowned on-chain whale, once known for an unbroken streak of victories, has now suffered a setback with a $19.63 million loss on a $64 million

(BTC) and (ETH) long trade, as reported by . This represents a significant reversal for the trader, who had achieved a perfect 100% win record since October 11, according to . The whale’s loss highlights the vulnerability of high-leverage tactics in unpredictable markets, carrying important lessons for both large-scale and individual investors.

The "Cool-headed Whale" had previously moved from short-term

and (SOL) gains to a long-term BTC/ETH position, but was met with heavy losses as prices fell below $99,000 for , according to Bitget’s findings.
Ethereum News Update: The Risks of Leverage Revealed—$1.2 Billion in Major Investor Losses Highlight Market Vulnerability image 0
The whale’s overall exposure of $116 million now stands in sharp contrast to earlier profits, with a $33 million gain wiped out after partial liquidations, as detailed in the Bitget report. The whale’s approach—offloading 9,000 ETH and contracts within 10 minutes—mirrored a broader pattern of traders reacting to shrinking liquidity and changing market mood, TheBlockBeats noted.

Elsewhere, other major players are also adjusting their portfolios. The "1011 Insider Whale" increased its 5x leveraged long positions by adding 3,000 ETH and 100 BTC, now holding $117 million in total with $1.8 million in unrealized losses, according to

. Bitmine, the largest institutional Ethereum holder, boosted its ETH reserves by 20% over the past month, receiving $69.89 million in new deposits, the same Bitget update revealed. In contrast, the "Top 100% Win Rate Whale" has now suffered five straight losses, with just $570,000 left after a $31.47 million loss this month, as per Bitget’s coverage.

Trading with high leverage continues to be a risky endeavor. A whale associated with Hyperliquid, known for a 14-win streak, lost $44.67 million in a single week after aggressively increasing positions during a downturn, according to

. This trader’s fall from a $25.349 million high to forced liquidation demonstrates the perils of excessive confidence and concentrated risk. Likewise, the "Machi Big Brother" whale returned to Hyperliquid with a 25x leveraged ETH long, while another whale raised a HYPE long position to $53 million, holding $2.13 million in unrealized gains, as earlier Bitget reports stated.

Market volatility has also resulted in widespread liquidations. Over $1.2 billion in positions were cleared within 24 hours, with long trades making up $1.092 billion of that total, according to

. Ethereum’s recent 9% plunge followed a sudden crash, while Bitcoin’s 4.63% drop over 24 hours has raised doubts about the ongoing bull market, as noted in the Bitget report.

Experts caution that whale activity signals broader market uncertainty. Some, such as the "CZ Reversal Trading Whale," have shifted to long positions totaling $1.09 billion, TheBlockBeats reported, while others are reducing exposure. The "Steadfast 25x ETH Long Whale" added $7.6 million to its position despite a $120,000 setback, Bitget reported.

The takeaway is unmistakable: leverage can magnify both profits and losses. As shown by one whale’s $1.4 million margin account—a warning highlighted in Bitget’s analysis—even the most accomplished traders can be undone by a single error. In a market characterized by swift changes, survival requires not just conviction, but also strict discipline.

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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.

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