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Crypto investor James Fickel incurred a loss of $43 million on a long position in Ethereum after neglecting the chance to secure a $17.2 million profit just four days into the investment.
Fickel, the founder of the Amaranth Foundation and known as a crypto whale, made a wager in January that Ethereum would outperform Bitcoin, as reported by analytics firm Lookonchain.
The firm stated in a post on X dated September 14 that Fickel borrowed 3,061 Wrapped Bitcoin (WBTC) valued at $172 million from the Aave lending protocol and swapped it for 56,445 ETH at a rate of 0.05424 per coin, anticipating a rise in ETH price
Fickel’s Ethereum Trade Initially Flourished
While the trade began promisingly, it soon deteriorated, resulting in a significant loss for Fickel. After securing the loan to acquire Ether, the ETH/BTC pair plummeted by over 25%.
“He currently owes 2,196 $WBTC ($132 million) in debt from #Aave, with an approximate loss of 18,000 $ETH ($43.7 million) overall!,” Lookonchain reported.
James Fickel (@jamesfickel) lost approximately 18,000 $ETH ($43.7 million) by taking a long position on the BTC/ETH trading pair!
Between January 10 and July 1, he borrowed 3,061 $WBTC ($172 million) from #Aave and traded it for 56,445 $ETH at the rate of 0.05424.
Since August 7, he invested $12 million in $USDC to obtain 211 $WBTC and exchanged… pic.twitter.com/9DgLjisPgp
— Lookonchain (@lookonchain) September 14, 2024
Fickel is currently facing $132 million in debt due to this trade. In the last 11 hours, he has repaid over $30 million to Aave, lowering the outstanding loan to $102 million.
Despite initiating the trade on January 10 amid a price surge in Ethereum, Fickel has been in the red since March 13, per TradingView’s data.
This crypto millionaire missed out on realizing 10% gains on his ETH/BTC position two times within 74 days.
As of April, Fickel was ranked by Arkham Intelligence as the fifth wealthiest individual in the crypto space, boasting a total wallet value of $446 million.
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