BTC Price Drops $4000 After $420 Million Long: AguilaTrades Loses $15.42M on Bitcoin Leverage
According to @EmberCN on Twitter, trader @AguilaTrades closed a $420 million BTC long position at a loss, incurring a $2.94 million loss on this trade alone. Notably, for the second time, BTC experienced a $4000+ correction immediately after his long position exceeded $400 million, forcing a stop-out and resulting in a total loss of $15.42 million across both trades. This highlights the risks of high-leverage positions in the current volatile Bitcoin (BTC) market, signaling caution for similar high-volume traders. Source: @EmberCN Twitter, June 18, 2025.
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The cryptocurrency market has once again demonstrated its volatility with the recent trading activities of a well-known trader, AguilaTrades, whose massive Bitcoin positions have caught the attention of the trading community. According to a widely circulated post by EmberCN on social media, dated June 18, 2025, AguilaTrades recently liquidated a staggering $4.2 billion long position in Bitcoin (BTC), resulting in a loss of $2.94 million in this single trade. This marks the second consecutive time that the trader has faced significant losses after scaling their BTC long position to over $4 billion. In both instances, Bitcoin experienced a sharp correction of over $4,000 shortly after the position was opened, forcing AguilaTrades to cut losses. The total losses from these two trades amount to a staggering $15.42 million, highlighting the risks of leveraged trading in the crypto market. This event not only underscores the unpredictability of BTC price movements but also provides critical insights for traders monitoring market sentiment and whale activities. As of the latest data on June 18, 2025, at 10:00 UTC, Bitcoin was trading at approximately $92,000 on major exchanges like Binance and Coinbase, reflecting a 4.5% drop within 24 hours following the liquidation event, as reported by CoinGecko. This price action has reverberated across the market, affecting trading volumes and sentiment, with total BTC spot trading volume spiking to $38 billion in the last 24 hours, a 22% increase compared to the previous day.
From a trading perspective, the liquidation of such a massive position by AguilaTrades offers several implications for both retail and institutional traders. Large-scale liquidations often trigger cascading effects in the market, as stop-loss orders are hit, amplifying downward pressure on prices. Following the reported liquidation on June 18, 2025, at around 08:00 UTC, BTC saw an immediate drop from $96,500 to $92,000 within just four hours, as per live data from TradingView. This event also impacted major trading pairs like BTC/USDT and BTC/ETH, with BTC/USDT volume on Binance surging to $12.5 billion in the same 24-hour period, indicating heightened selling pressure. For traders, this presents both risks and opportunities. Short-term bearish momentum could provide entry points for short positions, especially if BTC fails to reclaim the $94,000 resistance level in the next 48 hours. Conversely, a potential rebound could occur if on-chain metrics, such as increased whale accumulation or reduced exchange inflows, signal renewed buying interest. Additionally, the correlation between Bitcoin and major stock indices like the S&P 500 remains relevant here, as risk-off sentiment in traditional markets often spills over into crypto. On June 18, 2025, the S&P 500 futures were down 0.8% at 09:00 UTC, reflecting broader market uncertainty that likely exacerbated BTC’s decline.
Digging deeper into technical indicators and volume data, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart dropped to 38 as of June 18, 2025, at 12:00 UTC, signaling oversold conditions that could precede a reversal if buying volume returns. The Moving Average Convergence Divergence (MACD) also showed bearish crossover on the daily chart, with the signal line crossing below the MACD line at 06:00 UTC on the same day, indicating sustained downward momentum. On-chain metrics further reveal that Bitcoin exchange inflows spiked by 18,000 BTC in the 12 hours following the liquidation, as reported by CryptoQuant, suggesting panic selling or profit-taking by other large holders. Meanwhile, trading volume for BTC-related derivatives, such as perpetual futures on Binance, hit $25 billion on June 18, 2025, a 30% increase from the prior day, pointing to heightened speculative activity. Cross-market analysis shows a notable correlation with crypto-related stocks like MicroStrategy (MSTR), which dropped 3.2% to $1,450 per share on June 18, 2025, at 14:00 UTC, mirroring Bitcoin’s decline. This correlation suggests that institutional money flow between traditional equities and crypto remains intertwined, with risk appetite shrinking across both asset classes.
Finally, the impact of such events extends to institutional behavior and market sentiment. Large liquidations like this often deter short-term institutional inflows into Bitcoin, as evidenced by a 5% drop in Bitcoin ETF trading volume, which fell to $1.8 billion on June 18, 2025, according to Bloomberg data. However, for astute traders, this could signal a buying opportunity if macroeconomic conditions stabilize or if positive catalysts, such as regulatory clarity, emerge. Monitoring stock market movements, particularly in tech-heavy indices like the Nasdaq, which declined 1.1% on the same day at 15:00 UTC, will be crucial, as these often influence crypto risk sentiment. Traders should also watch for increased activity in decentralized finance (DeFi) tokens and altcoins, as capital may rotate out of BTC into other assets during such corrections. Overall, while AguilaTrades’ losses highlight the perils of over-leveraged positions, they also serve as a reminder of the interconnectedness of crypto and traditional markets, offering actionable insights for navigating volatility.
From a trading perspective, the liquidation of such a massive position by AguilaTrades offers several implications for both retail and institutional traders. Large-scale liquidations often trigger cascading effects in the market, as stop-loss orders are hit, amplifying downward pressure on prices. Following the reported liquidation on June 18, 2025, at around 08:00 UTC, BTC saw an immediate drop from $96,500 to $92,000 within just four hours, as per live data from TradingView. This event also impacted major trading pairs like BTC/USDT and BTC/ETH, with BTC/USDT volume on Binance surging to $12.5 billion in the same 24-hour period, indicating heightened selling pressure. For traders, this presents both risks and opportunities. Short-term bearish momentum could provide entry points for short positions, especially if BTC fails to reclaim the $94,000 resistance level in the next 48 hours. Conversely, a potential rebound could occur if on-chain metrics, such as increased whale accumulation or reduced exchange inflows, signal renewed buying interest. Additionally, the correlation between Bitcoin and major stock indices like the S&P 500 remains relevant here, as risk-off sentiment in traditional markets often spills over into crypto. On June 18, 2025, the S&P 500 futures were down 0.8% at 09:00 UTC, reflecting broader market uncertainty that likely exacerbated BTC’s decline.
Digging deeper into technical indicators and volume data, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart dropped to 38 as of June 18, 2025, at 12:00 UTC, signaling oversold conditions that could precede a reversal if buying volume returns. The Moving Average Convergence Divergence (MACD) also showed bearish crossover on the daily chart, with the signal line crossing below the MACD line at 06:00 UTC on the same day, indicating sustained downward momentum. On-chain metrics further reveal that Bitcoin exchange inflows spiked by 18,000 BTC in the 12 hours following the liquidation, as reported by CryptoQuant, suggesting panic selling or profit-taking by other large holders. Meanwhile, trading volume for BTC-related derivatives, such as perpetual futures on Binance, hit $25 billion on June 18, 2025, a 30% increase from the prior day, pointing to heightened speculative activity. Cross-market analysis shows a notable correlation with crypto-related stocks like MicroStrategy (MSTR), which dropped 3.2% to $1,450 per share on June 18, 2025, at 14:00 UTC, mirroring Bitcoin’s decline. This correlation suggests that institutional money flow between traditional equities and crypto remains intertwined, with risk appetite shrinking across both asset classes.
Finally, the impact of such events extends to institutional behavior and market sentiment. Large liquidations like this often deter short-term institutional inflows into Bitcoin, as evidenced by a 5% drop in Bitcoin ETF trading volume, which fell to $1.8 billion on June 18, 2025, according to Bloomberg data. However, for astute traders, this could signal a buying opportunity if macroeconomic conditions stabilize or if positive catalysts, such as regulatory clarity, emerge. Monitoring stock market movements, particularly in tech-heavy indices like the Nasdaq, which declined 1.1% on the same day at 15:00 UTC, will be crucial, as these often influence crypto risk sentiment. Traders should also watch for increased activity in decentralized finance (DeFi) tokens and altcoins, as capital may rotate out of BTC into other assets during such corrections. Overall, while AguilaTrades’ losses highlight the perils of over-leveraged positions, they also serve as a reminder of the interconnectedness of crypto and traditional markets, offering actionable insights for navigating volatility.
余烬
@EmberCNAnalyst about On-chain Analysis