According to Milk Road, a major crypto crash can result in a 70% loss of capital, highlighting the extreme volatility and risk in the cryptocurrency market (source: Milk Road, May 27, 2025). For traders, these significant downturns underscore the importance of robust risk management, diversification, and stop-loss strategies to mitigate portfolio damage during rapid price declines. Understanding such historic drawdowns is crucial for both short-term and long-term trading decisions, especially as crypto market volatility can surpass that of traditional assets.

According to @EmberCN, the Trump-backed DeFi project WLFI recently purchased 3.539 million MNT tokens for $3 million at $0.84 each. To date, WLFI has invested a total of $343 million across 11 tokens including ETH, WBTC, TRX, LINK, AAVE, ENA, MOVE, ONDO, SEI, AVAX, and MNT, currently showing an overall loss of one-third ($109 million).

According to Michaël van de Poppe (@CryptoMichNL), despite experiencing significant losses in his portfolio by going all-in on altcoins, he remains optimistic due to his understanding of the potential upside. His experience highlights the volatility and risk associated with altcoin investments, while also suggesting a belief in their long-term value. Traders might consider this perspective when assessing risk management strategies in volatile markets.

According to Ai 姨, Trump WLFl has increased its Ethereum holdings by purchasing an additional 500 million USDC worth of ETH at an average price of $2738, bringing the total holdings to 59,889.8 ETH. This purchase comes as the market rebounds, reducing their overall portfolio loss to $38.79 million.