In a stunning move, a crypto trader made $589,000 in under two hours by shorting the newly listed token, $BERA, following its listing on the market.
The trader with the address 0x0eC0…5AA9 deposited 1.6 million $USDC earlier today into the decentralized exchange Hyperliquid and initiated a short position at around $13 per token.
As the price of Berachain (BERA) declined sharply after its listing, the trader closed the position, withdrawing 2.19 million $USDC for a $589K profit.
The rapid and high-risk trading strategy exemplifies the lucrative opportunities presented by volatile market conditions, particularly with newly listed tokens.
Berachain’s Price Movement and Market Reaction
Following its listing, the price of Berachain (BERA) saw significant fluctuations. Initially priced at $13, the token experienced a noticeable drop, reaching $7.56 as of today, a 3.70% decline in the past 24 hours.
While this short-term correction was beneficial for the trader, it also highlights the unpredictable nature of newly listed tokens.
Although BERA has seen a price decrease in the short term, it has experienced an overall increase in value over the past week, indicating continued investor interest.
The price volatility is typical of newly listed assets, where initial excitement often gives way to price corrections after the token enters the market.
Also Read: Massive Short Position on Hyperliquid Yields $44M in Unrealized Profits as Ethereum Price Plummets
Significant Trading Volume and Market Activity
The trading activity surrounding Berachain (BERA) has been substantial, with a 24-hour trading volume exceeding $2.69 billion.
The level of activity indicates a high degree of market speculation and engagement from traders.
With a circulating supply of 110 million BERA tokens, the market capitalization of Berachain has reached approximately $813 million.
The significant valuation places the token in the spotlight, attracting both traders and investors looking to capitalize on its short-term volatility and long-term potential.
As the token’s market cap grows, further price fluctuations are expected as traders continue to navigate the volatility.
The Role of Shorting and Recent Market Trends
The trader’s success in shorting $BERA highlights the importance of shorting strategies within the cryptocurrency market, particularly during periods of market volatility.
Shorting allows traders to profit from falling prices, making it an attractive option when markets experience price corrections, like after a major listing.
However, shorting carries substantial risk and requires precise timing and market analysis, as demonstrated in this instance.
The strategy is not unique to $BERA, as seen in other recent market trends.
For example, a PEPE investor liquidated holdings amid a downturn, incurring $1.2 million in losses, and a whale’s short position on Ethereum using 50x leverage has generated unrealized profits of $44 million, showing that shorting remains a significant tool for traders in the crypto space.
Meanwhile, a broader market sell-off is also being triggered by profit-taking, with Bitcoin traders locking in $2.73 billion in profits, adding to market selling pressure and further emphasizing the cyclical nature of trading strategies during downturns.
Also Read: Bitcoin Whale Faces $6.75M Loss on BTC Long Position Loss Via Hyperliquid As Market Dips