"Hmm, but what can you do, you are the one who trades, so you are at your own risk."
An unknown trader unexpectedly lost $55 million while trading the Ethereum (ETH) pair on Binance USD (BUSD) on Binance when the cryptocurrency market witnessed a sudden crash late Thursday last week.
The position consisted of over 38,986 ETH before cashing while the price was at $1,434 level, therefore almost 30% of all future trades have been sold on Binance which is one of the largest crypto exchanges.
According to observations, the extraordinary amount of losses experienced by these traders could indicate that the largest holders of ETH including firms are also affected if the crypto market faces a crash.
Following the event, the price of ETH slid from $1,780 to as low as $1,560 in just a few minutes with trading volume of $20 billion compared to its previous $6 billion.
However, ETH, which is currently at $1,671, should recover amidst reports that the United States (US) security guard plans to approve an ETH exchange trading fund (ETF) for trading in the country.
However, it should also be noted that the drop in the price of ETH has occurred when there has been the largest forward trade sale in over a year, which is higher than what the crypto market experienced during the FTX crash.
Reportedly, high-leveraged buys or higher price bets have occurred while there were rumors about SpaceX selling off a large number of their BTC handles thereby leading to selling pressure.
As of this writing, the price of ETH has surged as much as 0.47% to $1,672 in the last 24 hours on a market cap of $201 billion but has continued to record a 9.43% loss over the past week.
