On today’s cryptocurrency landscape, a shrewd trader netted nearly $16 million from Ether’s recent price drop, Bitcoin dipped below the $100,000 mark as a result of US President Donald Trump’s stringent import tariffs, and El Salvador increased its Bitcoin holdings.
Ether Trader Bags $16 Million as ETH Price Drops to $3,000
One astute cryptocurrency trader has reaped almost $16 million by leveraging Ether’s price slump. This trader realized $15.7 million in unrealized profits from a leveraged Ether short position, utilizing a common strategy among traders to bet on a price decrease. This involves ‘borrowing’ the base cryptocurrency from a broker, selling it at its current price, and then repurchasing it when the price drops.
The trader initiated the 50x leveraged short position when ETH was trading at $3,388, with a liquidation threshold of $4,645, as per Hypurrscan data. The trader also pocketed an additional $2.3 million in funding fees from their leveraged position. However, it’s important to remember that while leveraged trading can potentially boost returns, it can also significantly escalate downside risks and result in a loss of the initial investment.
Bitcoin Dips Below $100,000 Following Donald Trump’s Import Tariffs
Bitcoin fell under $100,000 for the first time in six days as US President Donald Trump enacted an executive order imposing import tariffs on goods from China, Canada, and Mexico. The crypto industry is split over the potential impact of these tariffs on the broader market.
El Salvador Buys More BTC Despite IMF Deal
El Salvador purchased an additional two Bitcoin on February 1st, continuing its trend of accumulating BTC. Despite recent changes to its Bitcoin legal tender laws and the IMF deal, the country continues to add Bitcoin to its national reserve.
