A well-known early Bitcoin holder is sitting on a steep paper loss as crypto prices slide and leverage begins to work in reverse.
Summary
- An early Bitcoin holder is facing about $54M in unrealized losses on large BTC, ETH and SOL long positions.
- The drawdown comes as crypto markets weaken, liquidations rise, and fear levels deepen.
- Analysts continue to warn that high leverage remains risky during periods of macro and policy uncertainty.
The data was shared on Dec. 16 by on-chain analytics platform Onchain Lens. According to the analysis, the address, often referred to as a “Bitcoin OG,” is currently facing an unrealized loss of about $54 million across large long positions in Bitcoin, Ethereum, and Solana.
The trader had previously been up more than $119 million, but profits have now dropped to roughly $50 million as the market weakened.
Large long positions under pressure
The wallet has long positions with a total notional value of roughly $674 million. The biggest exposure is in Ethereum, where the trader has an average entry price of about $3,167 and is long about 190,900 ETH, worth close to $563 million.
Additionally, the account has 250,000 SOL, valued at about $31.5 million, entered around $137, and 1,000 BTC, valued at about $86 million, entered near $91,500.
All positions are one-sided longs, with no hedging through shorts. Because the margin usage ratio is nearly 75%, there is minimal room for error if prices continue to drop.
Although there are currently no signs of forced liquidations, the drawdown demonstrates how quickly conditions can change when substantial leverage is involved.
Market slide fuels losses
The losses come during a sharp pullback across the broader crypto market. Bitcoin dropped toward the $85,000 area, while Ethereum fell below $3,000 and Solana slid to around $126. Total crypto market capitalization declined about 5% to near $3.05 trillion.
Liquidations increased 126% over the previous day to $649 million, according to CoinGlass derivatives data, indicating growing stress among leveraged traders. At the same time, the Crypto Fear & Greed Index fell to 11, indicating deep risk aversion.
Market uncertainty has been amplified by macro concerns, including questions around U.S. monetary leadership and growing caution around risk assets. Several analysts have warned that high leverage is dangerous in this environment, even for experienced traders.
Fundstrat chairman Tom Lee said in a recent X post that assets like Bitcoin and Ethereum remain highly sensitive to shifts in risk perception, but he views sharp pullbacks as opportunities for long-term accumulation rather than aggressive leverage. His view reflects a shift among market participants toward caution, as volatility continues to punish crowded positions.
For now, the Bitcoin OG’s positions is still open, but the episode serves as a clear reminder of the risks of high leverage.
