A cryptocurrency trader is up over $1.1 million on his position within two days, after strategically positioning for the current crypto market correction.
A savvy crypto trader generated over $1.1 million worth of profit on his Ether (ETH) short position, which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price, and then repurchasing it once the price falls — as a strategy used by traders to bet on the price decline of an asset.
The trader opened the 50x leveraged short position when Ether was trading at $3,428, shorting a total of 19,186 Ether worth over $64.5 million as of 10:56 a.m. in UTC, according to blockchain data from hypurrscan.
Wallet ‘0x20c’ 50x leveraged ETH short. Source: hypurrscan
Beyond the $1.1 million unrealized profit, the trader also earned over $680,000 worth of funding fees on his short position, which has a liquidation price of above $4,750.
The savvy trader opened the short position on Dec. 24, which was initially down over $1.2 million during the first day, wrote onchain intelligence firm Lookonchian in a Dec. 24 X post.
While leveraged trading can potentially increase returns, it can significantly amplify downside risks and lead to the loss of the initial investment.
Leveraged trading loss Source: Tarded Degen Gambler
In January 2024, a pseudonymous trader lost over $161,000 worth of funds in a single trade, after being liquidated on a leveraged position, illustrating the risks of leveraged trading.
Crypto traders win big in 2024 with million-dollar trades
Capitalizing on the growing cryptocurrency valuations, some savvy traders won big in 2024, amid Bitcoin’s (BTC) historic climb to the $100,000 milestone, which it surpassed on Dec. 6 for the first time in crypto history.
On Dec. 14, an unknown memecoin trader turned a $27 investment into an extraordinary $52 million profit, generating an over 1.9-million-fold return on investment on the Pepe (PEPE) memecoin.
However, it took this trader 600 days of patient holding to realize the immense memecoin profit, as Pepe was soaring to new record highs.
Back in May, another unknown trader capitalized from Pepe’s price gains, netting over $46 million worth of profit, after generating an eye-watering 15,718-fold return on his initial $3,000 investment.
Savvy Pepe trader transactions. Source: Lookonchain
Other traders have been capitalizing on newly-created meme tokens, like the Just a Chill Guy (CHILLGUY) memecoin, which helped a trader turn a $160 investment into $5.6 million, Cointelegraph reported on Nov. 27.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: YouTube
Magazine: Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame
