How did a bitcoin trader lose $11 million in one day?
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Answer How did a bitcoin trader lose $11 million in one day?
Before going to the heart of the matter, it is inevitably your curiosity and desire to know how this huge loss occurred in one day that led you to read these words.
It is a nice thing to increase your knowledge and benefit from the experiences of others, and we encourage you to continue to do so, especially since we present on the Arab Bitcoin website from time to time topics that deal with the experiences of traders, whether positive or negative experiences to replace them.
Certainly, some people have thought that this trader used leverage.
Yes, that is exactly what happened.
A bitcoin trader lost about 1,220 BTC when the bitcoin price on BitMEX fell during the massive bitcoin drop that occurred last week.
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With the continuation of major declines in the cryptocurrency markets.
Bitcoin has stabilized and is relatively calm compared to the volatility it has been through, as it is valued at the time of writing this article at $6600.
Bitcoin suffered a week in which the unit price fell to $3,600 on BitMEX, to liquidate the long position of this trader, the subject of our conversation.
The first signs of a sharp decline in bitcoin began a 35% correction, as the price fell from $7,900 to $5,000.
This initial drop caused significant contracts to be liquidated.
This enabled BitMEX to sell tens of millions of dollars in bitcoin.
loss:
it turns out One of the traders with significant positions in bitcoin lost 1220 bitcoins in one day dated March 13, losing 50 percent of its value.
The value of 1,220 bitcoins reached $4.3 million on March 13, and the same value is estimated at $8 million today.
The value before bitcoin fell to current levels was estimated at $11 million.
Usually, huge accounts on BitMEX and other crypto platforms are traded with low leverage, which greatly reduces the possibility of liquidation.
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Even accounts with low leverage in the 3-5x range remained vulnerable to liquidation when the bitcoin price fell by 30-40%.
Eventually, more than $10 million in accounts were liquidated and there was massive sales pressure on Bitcoin.
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