Prominent cryptocurrency trader qwatio has reinitiated a significant short position on Bitcoin using 40x leverage. This move comes despite substantial losses incurred from previous leveraged Bitcoin trading activities.
Earlier leveraged trades executed by qwatio resulted in losses estimated at approximately $25.8 million. This history underscores the considerable risks inherent in high-leverage strategies, particularly within the notoriously volatile Bitcoin market.
By employing 40x leverage on the renewed BTC short, qwatio dramatically amplifies both the potential returns and the risk of liquidation. This approach significantly increases sensitivity to sudden price movements common in cryptocurrency markets, where rapid shifts can trigger substantial gains or losses exceeding the initial capital invested. The action highlights the extreme risk tolerance and speculative nature sometimes seen among leveraged traders.