EmberCN said Machi Big Brother has taken a $2.35 million hit over the past few days even as BTC and ETH largely moved sideways at elevated levels. According to the monitoring update, his capital fell from $11.15 million to $8.8 million during the period.
EmberCN attributed the losses to a high-leverage rolling strategy that struggles when the market is not moving in a one-way rally. In that setup, small price declines can repeatedly trigger stop-losses and forced position reductions, eroding capital even without a major move in the underlying assets.
Despite the drawdown, Machi Big Brother is still holding long positions worth $114 million. The update focuses on the structure of the strategy rather than any large directional move in BTC or ETH, pointing to leverage and repeated stop-outs as the main drivers of the losses.
According to EmberCN, BTC and ETH have traded sideways at relatively high levels over the past few days, with prices largely unchanged, but Machi Big Brother's capital fell from $11.15 million to $8.8 million, marking a loss of $2.35 million.
EmberCN said the rolling strategy loses money as long as the market is not in a one-way rally. The account is using excessive leverage, and the losses came from repeated stop-losses and position reductions after small price dips.
Machi Big Brother is currently holding long positions worth $114 million.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
