Ethereum trader earns $16M as ETH price falls to $3K
Some cryptocurrency traders are profiting millions from Ether’s six-week downtrend despite the heightened risks of leveraged trading.
A savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s price decline.
The trader generated $15.7 million worth of unrealized profit on a leveraged Ether (ETH) short position, which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price and then repurchasing it once the price falls — a strategy used by traders to bet on the price decline of an asset.
The trader opened the 50x leveraged short position when ETH traded at $3,388, with a liquidation threshold of $4,645, Hypurrscan data shows.
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Author: Zoltan Vardai
