Bitcoin’s Wild Ride: Fortunes Made and Lost in a Single Day
The volatile world of Bitcoin saw dramatic swings this week, with a surge in price leading to massive liquidations and significant gains for savvy traders. One investor faced a staggering $88.5 million liquidation on Thursday as Bitcoin soared, contributing to a total of $1.14 billion in short positions wiped out in the last 24 hours.
However, not everyone suffered. Some traders who had previously been in the red managed to capitalize on the cryptocurrency’s upward trajectory, correctly predicting the market’s direction.
Bitcoin Hits New All-Time High
Bitcoin reached a new record high, trading around $118,000 on Friday. This surge was fueled, in part, by substantial inflows from American ETFs.
A Costly Bet Against Bitcoin
Data from Coinglass reveals that over $1 billion in orders were liquidated on Thursday as Bitcoin reached its peak. This marks the largest single-day liquidation event of the year.
The single largest liquidation belonged to an investor who lost $88.5 million when Bitcoin hit $116,363.30. It’s important to note that this loss likely reflects leveraged trading, amplifying both potential gains and risks.
The $112,000 level, previously a historical high, acted as a significant resistance point. Many investors were caught off guard when Bitcoin broke through this barrier, triggering widespread liquidations.
In total, approximately 275,000 traders were liquidated in the past 24 hours. Of the $1.3 billion liquidated, a substantial $1.15 billion came from short positions, mirroring the unfortunate trader mentioned earlier.
Trader Recovers Millions After Previous Losses
Amidst the chaos, some traders emerged victorious. One notable example is a trader known as ‘Aguila Trades’.
After losing $35 million in just two weeks, Aguila Trades managed to recoup a significant portion of those losses on Friday by betting on Bitcoin’s rise.
“Aguila Trades is currently sitting on an unrealized profit of $29.32 million on their long position of 3,000 BTC (worth $356 million),” Lookonchain reported. “They are close to recovering the $35 million they lost earlier, with total losses now reduced to just $4.55 million.”
Operating on a decentralized exchange, Aguila Trades employs an aggressive strategy with 20x leverage. Their liquidation price currently sits at $108,469.
A Word of Caution
Despite Bitcoin’s increasing maturity, the cryptocurrency remains prone to significant price fluctuations. Therefore, leverage should be used with extreme caution and for specific purposes, such as diversifying holdings across multiple exchanges.
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