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Machi doubles down on leveraged ETH longs as market bleeds out

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What wiped out $1.7 billion?

High-profile whale reloads on 25x ETH leverage despite racking up over $29.7 million in realized losses as majors slide and funding turns negative.

Summary

  • Machi sends another 210,000 USDC to HyperLiquid to scale an already aggressive ETH long.
  • His cumulative loss on this campaign now exceeds $29.7 million amid a broad crypto pullback.
  • The move comes as ETH trades around $1,978, BTC near $68,583 and funding flips mildly negative.

In the middle of a red day for majors, on-chain data shows Machi (machibigbrother) wiring an additional 210,000 USDC to the derivatives venue HyperLiquid, explicitly to expand a high-octane long position in ETH with maximum leverage up to 25x.

This is not a fresh thesis so much as an attempt to press a bruised conviction trade: as the market rolled over, Machi had already been forced to cut and close most of his earlier exposure, crystallizing more than $29.7 million in realized losses on this campaign alone. Yet rather than de-risk into weakness, he is stepping back into the same structure, in the same asset, with the same extreme gearing.

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The timing is stark. At the moment of the report, BTC trades around $68,583, down roughly 4%, while ETH changes hands near $1,978, off almost 4.9% on the day. Across the board, majors are under pressure: SOL slides more than 5%, LINK nearly 4.8%, with alt liquidity thin and correlations elevated. Derivatives metrics confirm stress under the surface, with the 8‑hour average funding rate on ETH marginally negative at about -0.0047%, a sign that perpetual traders are skewed short or at least no longer willing to pay up for long exposure.

At the same time, structural flows are turning against the complex. U.S. spot Bitcoin ETFs saw net outflows equivalent to 1,697 BTC, while Ethereum ETFs bled around 3,185 ETH, draining some of the passive bid that had previously supported dips. Network-wide, the liquidation tally over the last 24 hours reached roughly $354 million, with the bulk coming from overleveraged longs that were forced out as prices slid. Against that backdrop, Machi’s decision to reload on 25x ETH longs looks less like quiet accumulation and more like a public stress test of risk tolerance—one that will either be rewarded by a sharp mean-reversion bounce or remembered as a textbook case of throwing good money after bad into a structurally weak tape.

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Crypto World

US National Cyber Strategy Pledges Support For Crypto And Blockchain

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Cryptocurrencies, United States, AI, Donald Trump, Quantum Computing

Crypto industry executives are combing through US President Donald Trump’s National Cyber Strategy after it was released on Friday, searching for hints about what it could signal for government support of the crypto industry.

“Crypto and blockchain are explicitly named as technologies to be ‘protected and secured.’ This is a first for any US cybersecurity strategy,” Galaxy Digital’s head of firmwide research Alex Thorn said in an X post on Friday.

Crypto and blockchain were mentioned once in the six-page report:

“We will build secure technologies and supply chains that protect user privacy from design to deployment, including supporting the security of cryptocurrencies and blockchain technologies.”

However, industry executives have also been interpreting other parts of the document to see how they relate to crypto.

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Cryptocurrencies, United States, AI, Donald Trump, Quantum Computing
Source: Mark Chadwick

Thorn pointed to a section pledging to “uproot criminal infrastructure and deny financial exit and safe haven.” “This language could easily justify crackdowns on mixers, privacy coins, and unregulated off-ramps,” he said.

Bitcoin VC points out that quantum has been taken “seriously”

Castle Island Ventures founder Nic Carter, who has been vocal about the threat of quantum computing to Bitcoin (BTC) in recent times, pointed to the section saying the government “will accelerate the modernization, defensibility, and resilience of federal information systems by implementing cybersecurity best practices, post-quantum cryptography, zero-trust architecture, and cloud transition.”

“Sure seems like they’re taking quantum seriously. Nothing to worry about, I’m sure,” Carter said in an X post.

It comes as the crypto industry continues to debate about how close quantum computing is to being a serious threat to Bitcoin. On Feb. 15, Carter said that major Bitcoin-holding institutions may eventually lose patience with Bitcoin developers for not addressing quantum computing concerns quickly enough.

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Trump points to the next generation as a priority

Trump said that the National Cyber Security outlines his priorities for “ensuring that America remains unrivaled in cyberspace.” Artificial intelligence was a key focus of the report.

“We will secure the AI technology stack—including our data centers—and promote innovation in AI security,” it said.

Related: Community banks and crypto industry ‘are allies’ in CLARITY Act debate: Exec

Trump also emphasized the importance of recruiting the next generation of workers in the cyber workforce to “design and deploy exquisite cyber technologies and solutions.”

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The US typically releases a national cybersecurity strategy every administration, outlining the government’s priorities for emerging technologies.

Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen