On the 2nd (local time), it was reported that a veteran cryptocurrency trader took advantage of the drop in the price of Ethereum to make a profit of approximately $16 million.
The trader made approximately $15.7 million through a 50x leveraged short position in Ethereum.
Short selling is essentially a strategy in which you borrow cryptocurrency from an intermediary, sell it at the current price, and then repurchase it if the price falls, leaving you with a profit.
According to data from Hypurrscan, the trader initiated a short with 50x leverage when the price of ETH was $3,388, and the liquidation price of that position was $464.
The trader also reportedly made an additional $2.3 million in financing proceeds from his leveraged positions.
Meanwhile, the price of Ethereum was 24/7 on CoinMarketCap as of 11 a.m. on the 3rd (Korean time).
It is trading at $2,501, down 20.58% in the past month. Analysts say Ethereum's blockchain adoption will need to increase further to reverse the six-week downward trend.
According to Cointelegraph, Aurelie Barthere, senior research analyst at Nansen, said, "Other layer 1 blockchains
"Ethereum is competing with Ethereum and is rapidly catching up in terms of applications, use cases, fees and staking scale."
Bartel noted that the regulatory environment surrounding blockchain and cryptocurrencies has changed positively in the United States, particularly recently.
He predicted that Ethereum would benefit more from greater collaboration with the private and public sectors, as the blockchain has a strong presence in the blockchain industry.
Meanwhile, Cas Abe, a well-known cryptocurrency trader,
On February 1, Abbé wrote on X that "if the price of ETH fails to recover to $3,400, a reversal towards $4,000 is possible."
2025/02/03 14:13 KST
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