GMX Trader Just Made Over $1 Million Shorting

According to Lookonchain, a blockchain tracker, a trader using GMX, a decentralized exchange, managed to make over $1 million by accurately predicting the price movement of Ethereum (ETH) over the past few weeks.

Lookonchain reports that the trader shorted ETH on July 14th when it was priced at approximately $2,000, and then closed the position after the market crashed last week, resulting in a profit of nearly $1 million.

The trader then went long on Ethereum with an entry price of $1,624 and is currently making a profit of $145,721 on that position.

As of now, ETH is trading at $1,667, down 0.75% in the past 24 hours and more than 9.6% in the past seven days, and is the second-largest crypto asset by market cap.

According to its website, GMX specializes in perpetual futures trading and strives to offer its users low swap fees and trades with minimal price impact.

The DEX is currently available on both the Arbitrum (ARB) scaling solution for Ethereum and the Avalanche (AVAX) smart contract platform.

However, not all GMX traders have been successful. Lookonchain reports that one trader who went long on Bitcoin (BTC) before last week’s market crash has lost approximately $1.07 million and is still holding onto the underwater position, according to data from GMX.

Rekt Capital, a popular analyst has stated that the double-top formation has already taken place. He also predicts that Bitcoin’s value could fall below $26,000, similar to what happened in mid-June.

According to the analyst, if Bitcoin closes below $26,000 for an entire week, it will validate the double top formation and lead to a continuation of the breakdown.

He is monitoring Bitcoin’s trading volume on the weekly chart. Despite Bitcoin’s current trading close to the $26,000 mark, Rekt Capital suggests that a breakdown is unlikely unless there is a significant increase in trading volume.