Hard fluctuations in the crypto money market caused great damage to investors engaged in high leveraged transactions. A trader’s bitcoin $86,724.40 And the leveraged investments in assets such as Solana have resulted in a loss of $ 17.5 million so far. Uncertainty in the market and possible decreases in the price of Bitcoin brought up the concerns that the total loss of the trader could reach $ 25 million.
High leverage risk and bitcoin price movements
Most of the trader’s positions are focused on Bitcoin and Solana. The risks are increased when the positions opened with 10 times leverage for Bitcoin are combined with the operations entered using 20 layers of leverage in Solana. The fluctuation in the market can lead to further deepening of the existing pest of the trader.
Bitcoin is currently trading at 86 thousand dollars. However, if the price decreased to 74 thousand dollars, it is estimated that the trader will reach 25 million dollars. Due to the high leverage rates, the trader’s collateral margin is under high pressure. The existing guarantee rate is 80.92 %, which is considered one of the main factors that increase the risk of liquidation.
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Analysts’ expectations and strategies of investors
Analysts report different opinions about Bitcoin’s future price movements. Some analysts predict that Bitcoin may fall to $ 70,000. Another view argues that Bitcoin has the potential to go over $ 100,000 again.
Due to the volatility of the market, traders may experience great losses or use price fluctuations to make profit. The risks of high leverage use become more critical for investors with market fluctuations. For this reason, those who are actively involved in the market should be careful and follow the market movements closely.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.