A dramatic leveraged trade unfolded in the crypto market this week, as on-chain analytics revealed a new trader opened a massive short position on Bitcoin just days after entering the derivatives space. On January 13, an address initiated a 40x leveraged short on 125.92 BTC, valued at approximately $11.57 million, with an average entry price near $91,316.
The Peril of Extreme Leverage
Instead of a downward move, Bitcoin’s price strengthened, moving sharply against the position. As a result, the trade quickly fell into the red, accumulating an unrealized loss of $75,000.
The incident has sparked intense debate in trading communities. Experts warn that novice traders often underestimate the risks of high-leverage positions, especially during periods of high volatility.
- Entry Date: January 13
- Contract Type: Perpetual Futures Short
- Leverage: 40x
- Position Size: 125.92 BTC
- Average Price: ~$91,316
From First Trade to Aggressive Bet in Under a Week
Records show the wallet executed its first-ever futures transaction on January 9, meaning this high-stakes move came just four days later. This rapid escalation underscores a growing trend of overconfidence among new market participants.
Analysts emphasize that with 40x leverage, even a 2.5% price swing against the position can lead to substantial losses. This case serves as a stark reminder: while crypto derivatives offer opportunity, they demand discipline, risk management, and a clear understanding of market dynamics.