Two high-profile leveraged long positions in Bitcoin and Ethereum have suffered staggering unrealized losses as crypto prices falter. On-chain data reveals that Garrett Jin, founder of the collapsed BitForex exchange, is sitting on a paper loss of about $21.12 million on a 5x leveraged BTC long position of 1,268.33 BTC, with an average entry price of $76,117. Despite the steep loss, the position’s liquidation price is just $16,962, meaning forced closure is not imminent.
Separately, a wallet linked to BIT (formerly Matrixport) faces a combined unrealized loss exceeding $92.5 million on 120,000 ETH ($187 million) and 500 BTC ($29.33 million), according to Lookonchain. Ethereum’s drop below $1,600 exacerbated the paper loss, underscoring the dangers of leverage in volatile markets. The BIT-linked address has yet to close its positions, but further price declines could trigger margin calls or liquidations.
These incidents highlight the risks of high-leverage trading, even for well-capitalized players, and may dent market sentiment around leveraged products.
