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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, .

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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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