A well-known on-chain trader just made a move that raised eyebrows: selling his Bored Ape Yacht Club NFT at a loss to double down on his Ethereum bet. His total position now stands at $9.38 million - with a liquidation line looming just beneath current prices.
Selling at a Loss to Add Ammunition
The trader known as Machi (@machibigbrother) sold Bored Ape Yacht Club #251 for a loss of 6.99 ETH - worth roughly $12,400. Instead of keeping the cash, he immediately poured it into his Ethereum long position. The transaction was tracked and revealed by whale analytics account Lookonchain.
Selling a flagship collectible at a loss is not a casual decision for any trader. Such a move usually signals one thing: significant conviction - or pressure - willing to absorb a small loss for what is perceived to be a much larger opportunity.
A $9.38 Million Position and the Untouchable Line
Following the additional capital, Machi now holds a long position of 5,264 ETH, valued at around $9.38 million. The critical number to watch is $1,756.76 - the liquidation price of the position. As long as Ethereum stays above that mark, the trade remains alive. But if ETH remains under pressure and slides toward $1,756, the massive position could be liquidated in an instant.
This highlights the most nerve-wracking aspect of leverage trading: potential profits can multiply, but only a single price point stands between surviving and being completely wiped out.
Conviction or Recklessness?
Machi’s move offers a glimpse into the pressure weighing on large traders amid sluggish Ethereum price action. Dumping a prized collection to fuel a leveraged position can be seen as strong conviction that ETH will soon rebound - or as an enormous gamble with wide-open risk. Which one proves true will be determined by price action in the coming days. What is certain is that at $1,756, there is no room left for miscalculation.
Reported by @lookonchain on X.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
