In a startling hit to the crypto sphere, an anonymous trader or perhaps a trading firm has reportedly lost a whopping $55 million on an ether trade against Binance USD on the acclaimed cryptocurrency exchange Binance. This dramatic event unfolded as the crypto markets took a sudden nosedive. The said trade, which consisted of 38,986.528 ether (ETH), went through liquidation at the $1,434 price level, making up nearly 30% of all liquidated futures on Binance.
The enormity of the amount involved in just a single transaction suggests that the blow may have been dealt to either a large crypto firm or substantial holder of ether, underscoring the inherent risks in this burgeoning field. Ether, in a matter of minutes, rolled from $1,780 to $1,560 contributing to a surge in trading volume from $6 billion to a mammoth $20 billion across various exchanges.
While the digital currency did manage to claw back some of its losses, it’s primarily due to late reports of U.S. securities regulators planning to endorse ether futures ETFs in the country. As an aftermath, the ETH was trading just over $1,690 as the curtain closed on the trading day in Asia, indicating a drop of approximately 6% in the last 24 hours.
While the future seems perpetually uncertain due to the volatile nature of these digital assets, this drop in ether’s prices is one of the highest liquidations witnessed in over a year, even surpassing the market impact attributed to the infamous crash of crypto exchange FTX. However, this calamity, some argue, maybe a result of highly leveraged long bets on higher prices, leading to what appears to be a classic long squeeze occasioned by rumors of SpaceX selling its bitcoin holdings. While the company only wrote down the book value of its holdings, many interpreted this as selling, putting substantial selling pressure on the market.
Furthermore, bitcoin experienced a 7% drop in the last 24 hours, a considerable tumble in recent months during a period of low volatility. It’s also important to note that other major players like XRP, DOGE, and bitcoin cash have also been subjected to losses, plummeting by up to 15%. The recent events underscore the paradoxical nature of the crypto market, which is undoubtedly one of its most enticing and daunting attributes.
Source: Coindesk
