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Bitcoin Trader Loses Nearly $567K Longing BTC/ETH to High Leverage

Published 28/04/2023, 18:30
Bitcoin Trader Loses Nearly $567K Longing BTC/ETH to High Leverage

  • Andrew Kang lost nearly $567,000 in a trading session in liquidated BTC/ETH long positions.

  • Kang used 40x and 41x leverage on two separate trades running concurrently.

  • Users believe Kang’s loss was due to overleveraged positions.

Renowned Bitcoin trader Andrew Kang lost nearly $567,000 in a single trading session after the exchange liquidated his BTC/ETH long positions. According to Lookonchain, a smart money on-chain analyst, Kang used up to 41x leverage on the trades, which users thought was excessive.

A screenshot of Kang’s trading activities attached to Lookonchain’s tweet revealed three highly-leveraged BTC/ETH long positions in the trades.

Out of the three, only one position was in profit. That is the 32x leveraged BTC/ETH long, which reflected a $145,528 gain at the time of the report. The other two positions, now liquidated, were leveraged at 40x and 41x and recorded respective losses of $270,763 and $295,836.

The BTC/ETH trading pair has rallied for the past ten days with no significant pullback on the daily chart. The recent uptrend started after the trading pair recorded a 12.6% crash between April 12 and April 17, 2023. Since then, the trading pair has been in an upward recovery.

BTC/ETH Daily Chart on TradingView

Kang’s trade liquidation surprised some of Lookonchain’s respondents. They believe overleveraging is the only reason behind such a significant loss under current market conditions.

While one respondent criticized Kang for not employing risk management procedures, another indicated his trading wallet had depleted from $5 million to below $1 million due to the liquidations.

At the time of writing, the BTC/ETH pair exchanged for $15.29, according to data from TradingView. This price represents an 8.82% recovery from the local low of $14.07 as the pair surges toward the yearly high of $16.12 achieved on Wednesday, April 12, 2023.

The post Bitcoin Trader Loses Nearly $567K Longing BTC/ETH to High Leverage appeared first on Coin Edition.

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