In a strategic move, an anonymous trader took a short position on both Bitcoin [BTC] and Ethereum [ETH] just five hours before the prices of these leading cryptocurrencies experienced a significant crash, resulting in a current profit of nearly $200,000. “Smart or lucky? This trader shorted Bitcoin and Ethereum 5 hours before the BTC & ETH prices crashed. The current profit is close to $200K.” Further insights into this trader’s activities were brought to light by Lookonchain, a prominent on-chain data aggregator.
According to the dashboard on Dune Analytics, this anonymous trader has engaged in a total of 46 trades on the GMX exchange, with a notable win rate of around 35%, having emerged victorious in 16 of those trades. Despite the relatively low win rate, the trader has managed to accumulate a substantial total profit of approximately $457,000. What stands out is the trader’s inclination toward using an average leverage of nearly 14x per order, coupled with an average position holding time of around 7 days.
Remarkably, the trader has consistently implemented a stop-loss order with each trade, ensuring that losses on individual orders are kept relatively modest. This risk management strategy, coupled with the ability to predict and capitalize on market movements, has contributed to the trader’s overall success and profit accumulation.
Bitcoin Drops 5% After 8 Weeks of Gains
The crypto community has been quick to applaud the strategic prowess of this anonymous investor. One enthusiastic commenter expressed admiration, stating, “Big brain moves! This trader’s got that crystal ball energy, calling shots before the market dips. Mad props for playing the game like a pro.” The trader’s ability to navigate the volatile crypto market, coupled with the evident success of their predictive moves, has garnered recognition and respect within the community, showcasing the skill and strategic acumen of this anonymous market participant.
That being said, the week commenced with Bitcoin experiencing a 5% decline during the early hours of the Asian trading session, following its eighth consecutive positive week. The Kobeissi Letter, a macroeconomics outlet, advocated for a return to the $41,500 support level, suggesting the potential formation of a higher low.