Bitcoin Whale With 40x Leverage Gets Liquidated

Bitget App

Trade smarter

Coinomedia2025/05/31 20:40

By:Isolde VerneIsolde Verne

A high-leverage Bitcoin whale has been fully liquidated, reducing their balance to just $16.28.High-Stakes Leverage Ends in Heavy LossWhat Is 40x Leverage and Why Is It Risky?Lesson for Retail and Institutional Traders

A 40x leveraged Bitcoin whale was fully liquidated
Whale’s balance dropped to $16.28 after the event
Highlights the high risk of extreme leverage in crypto

High-Stakes Leverage Ends in Heavy Loss

A massive shake-up has hit the crypto market . A Bitcoin whale using 40x leverage has been completely liquidated, leaving just $16.28 in their wallet. Once a major player, the individual reportedly held a significant position in BTC before market volatility wiped them out in a matter of moments.

This liquidation serves as a stark reminder of the dangers associated with high-leverage trading in crypto—where fortunes can be made or lost in minutes.

💥BREAKING:

40X BITCOIN WHALE IS FULLY LIQUIDATED

CURRENT BALANCE: $16.28 pic.twitter.com/eaPpSiVdOf
— Crypto Rover (@rovercrc) May 31, 2025

What Is 40x Leverage and Why Is It Risky?

Leverage allows traders to borrow capital to increase their position size, with 40x leverage meaning a trader can control $40 for every $1 they actually own. While this amplifies profits when the market moves favorably, it also magnifies losses. A slight drop in Bitcoin’s price can trigger automatic liquidation, closing the position to prevent further losses.

In this case, Bitcoin’s sudden dip was enough to erase the whale’s position entirely, underscoring how risky it is to use extreme leverage in such a volatile market.

Lesson for Retail and Institutional Traders

The crypto market is full of opportunities, but this event reinforces a critical lesson: leverage can be a double-edged sword. Whether you’re a retail investor or a whale, proper risk management is essential. Tools like stop-loss orders, lower leverage ratios, and portfolio diversification are key strategies to avoid devastating losses.

As the crypto market continues to evolve, events like this one highlight the need for caution, education, and a disciplined trading approach.

Read Also:

Capturing Whale Attention: 69% APY Makes Troller Cat One of the Best 100x Cryptos as Brett Slows and Keyboard Cat Stir
2025’s Top Cryptos to Invest in Right Now: Qubetics’ Secure Ecosystem, Tron’s Lending Leap, and Stellar’s Cross-Border AI Push
Bitcoin Whale With 40x Leverage Gets Liquidated
Missed Bitcoin at $1? BlockDAG at $0.0018 Might Be Your Second Chance
Meta Shareholders Reject Bitcoin Treasury Plan

Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!