As Ethereum fell to around $2,200 for two consecutive days this week, a whale that had leveraged loans to increase its ETH holdings was forced to sell its Ethereum to repay its debt and avoid liquidation. The realized losses amounted to $2.02 million, and its unbeatable myth since November last year may also be shattered.
(Catch-up:
Bitcoin “plunges to $39,430,” hitting a new low this year, while Ethereum falls below $2,300, resulting in over $200 million in liquidation of long positions.)
(Background:
Morning Report on Cryptocurrency Market: Bitcoin struggles between $41,500 long and short, while Ethereum fails to break above $2,500.)
After the brief spike following the approval of Bitcoin spot ETF, the cryptocurrency market has been continuously declining. The expectation of Ethereum spot ETF this year had driven the ETH price to a high of $2,717 on December 12. However, within two weeks, it has dropped by nearly 20%.
ETH Trend | Source: Binance Spot
Unbeatable Ethereum whale loses $2.02 million since November
The continuous decline of Ethereum has also resulted in heavy losses for bullish investors.
According to Twitter user ai_9684xtpa’s monitoring on the 23rd, an Ethereum whale with a 100% win rate since November last year had accumulated 20,841 ETH at an average cost of $2,380 through the method of “mortgaging ETH > borrowing stablecoin DAI from Maker DAO > buying ETH.” The value was approximately $50.54 million.
However, as the ETH price fell, the whale faced liquidation risks on Maker DAO, forcing it to sell 12,715 ETH (approximately $28.25 million) to repay the loan around 6:30 p.m. yesterday, resulting in a loss of $2.02 million. The 100% win rate was thus broken.
It is understood that the whale currently still holds 7,001 ETH. Although the health indicator of its assets on Maker DAO has improved, if ETH continues to decline or maintains a low-level oscillation, the whale’s losses may continue to expand.
10:40 Update: Remaining 7,000 ETH has been sold in full
The latest information indicates that the remaining 7,000 ETH of the whale has been sold in full, resulting in a cumulative loss of $3.17 million.
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