- Andrew Kang lost nearly $567,000 in a trading session in liquidated BTC/ETH long positions.
- Kang used 40x and 41x leverage on two separate trades running concurrently.
- Users believe Kang’s loss was due to overleveraged positions.
Renowned Bitcoin trader Andrew Kang lost nearly $567,000 in a single trading session after the exchange liquidated his BTC/ETH long positions. According to Lookonchain, a smart money on-chain analyst, Kang used up to 41x leverage on the trades, which users thought was excessive.
The BTC/ETH long position of Andrew Kang(@Rewkang) on #GMX was liquidated yesterday and lost ~$567K.He used up to 41x leverage!https://t.co/UCgIboyQCT pic.twitter.com/MK1XnbJole— Lookonchain (@lookonchain) April 28, 2023
A screenshot of Kang’s trading activities attached to Lookonchain’s tweet revealed three highly-leveraged BTC/ETH long positions in the trades.
Out of the three, only one position was in profit. That is the 32x leveraged BTC/ETH long, which reflected a $145,528 gain at the time of the report. The other two positions, now liquidated, were leveraged at 40x and 41x and recorded respective losses of $270,763 and $295,836.
The BTC/ETH trading pair has rallied for the past ten days with no significant pullback on the daily chart. The recent uptrend started after the trading pair recorded a 12.6% crash between April 12 and April 17, 2023. Since then, the trading pair has been in an upward recovery.
BTC/ETH Daily Chart on TradingView
Kang’s trade liquidation surprised some of Lookonchain’s respondents. They believe overleveraging is the only reason behind such a significant loss under current market conditions.
While one respondent criticized Kang for not employing risk management procedures, another indicated his trading wallet had depleted from $5 million to below $1 million due to the liquidations.
At the time of writing, the BTC/ETH pair exchanged for $15.29, according to data from TradingView. This price represents an 8.82% recovery from the local low of $14.07 as the pair surges toward the yearly high of $16.12 achieved on Wednesday, April 12, 2023.
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