Crypto Trader AguilaTrades Loses $35 Million in Two Weeks

A seasoned crypto trader, known as AguilaTrades, recently made headlines for losing over $35 million in just two weeks. Despite his experience and often accurate market predictions, his trading decisions led to significant financial losses. The incident began on June 8, when AguilaTrades transferred $39.18 million worth of USDC from Bybit to Hyperliquid, a platform for perpetual BTC contracts. His initial strategy was to go long on Bitcoin, betting on a price increase.

Initially, AguilaTrades' strategy seemed to be paying off. On June 9, he opened a large long position on Bitcoin as the price started to climb. His unrealized profits peaked at $5.76 million. However, instead of securing these gains, he held onto his position, hoping for further increases. This decision proved costly as geopolitical tensions, stemming from the Israel-Iran conflict, caused Bitcoin's price to drop sharply. AguilaTrades was forced to close his long position, resulting in a $12.47 million loss.

Undeterred, AguilaTrades attempted to recoup his losses by going long on Bitcoin again on June 15. Once more, Bitcoin's price climbed, and his gains reached $10 million. Yet, he failed to sell at this point. When the market turned, his profits vanished, and he incurred another $2.95 million in losses. On June 20, he repeated the same strategy, opening another long position as Bitcoin rallied. With $3.2 million in profits, he again chose not to sell. As Bitcoin's price dropped, his losses deepened to $17 million.

After three unsuccessful long trades, AguilaTrades finally changed his strategy and went short, betting that Bitcoin would drop. Unfortunately, Bitcoin's price bounced back, adding another $2.33 million to his losses. In just two weeks, AguilaTrades' account shrank from $39 million to $4 million, a loss of over $35 million.

This incident highlights the risks associated with crypto trading, particularly when relying on high-risk strategies. AguilaTrades' experience serves as a cautionary tale for other traders, emphasizing the importance of risk management and diversification in crypto investments. The trader's losses underscore the need for a more conservative approach to crypto trading, especially in volatile market conditions. Despite his experience and often accurate market predictions, AguilaTrades' decisions led to significant financial losses, demonstrating the inherent risks in the crypto market.