One of the most notable on-chain crypto traders, known with the address 0xFC78, has had his fortunes crucially reversed due to suffering his two recent high-leverage trades. The previously popular trader had amassed more than $1.78 million profits, having a 9-trade winning streak. Nonetheless, recent missteps wiped those gains entirely (and even sent him 117,000 under his principal).
The steep drop of the trader serves to emphasize the risks of overconfidence and leverage piling in a highly volatile crypto market that is brutal to excess risk.
Revenge Crypto Trading Sparks Aggressive Short Positions
Rather than stepping back, 0xFC78 seems to have gone full-scale revenge trading, doubling up with huge leveraged short-sale positions. According to Hyperdash data, the trader carried out:
- A short of 30x 200 BTC worth 18.75 million USD.
- A 20x short on 5,000 ETH worth $15.26 million
These positions combined put in excess of $34 million at risk, which is compounded by high leverage ratios which would greatly augment liquidation risk.
Unrealized Losses Already Mounting
The unrealized PnL of the trader is:
- BTC short: –$12,600
- ETH short: –$12,493
Although these figures cannot be considered significant when compared to the huge position sizes, even the movement of 1-2% against position can provoke forced liquidations, as leverage is great.
The overall unrealized loss of the trader in the combined portfolio is indicated as -$25,093 and his equity dropped to about 1.81 million.
Liquidation Prices Alarmingly Close
The survival of the crypto trader depends on the lack of volatility in the market that can drive the prices to the liquidation levels, which are alarmingly low:
- BTC liquidation price: $94,721.61
- ETH liquidation price: $3,229.41
These liquidation levels do not provide much breathing room, given that both Bitcoin and Ethereum have exhibited unstable intraday movements in the current market condition.
Even a small increase in any of the aforementioned assets may cause liquidations in a domino effect, millions lost in a few minutes.
Crypto Market Watches Closely as Trader Faces Critical Hours
The crypto community is keenly watching the wallet since it is on the brink of another big crash. Whales that are highly leveraged tend to affect the derivatives markets, and large positions such as these can be transpired across the exchanges.
The phenomenal growth and prompt fall of the crypto trader 0xFC78 is a warning against the dangers of high leverage trading and revenge-based trades made with emotions. What started as an incredible streak of success has now become a high roller game that may wipe out the rest of his capital.
It all now depends on whether the crypto trader will recover or be forced into liquidation, this is all determined by the direction of the market-and a fair share of good fortune.
