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The recent drop in the price of the cryptocurrency Ethereum (ETH), which lost 10% in just two days, has caused speculation in the market. One of the most striking factors was the $66 million loss suffered by the crypto executive founder of Tron, Justin Sun.

Interestingly, Sun has stated his desire to buy some of the 900 Bitcoins (BTC) sold by the German government this week. However, the large losses he suffered with ETH could derail those plans.

Million-dollar loss due to cryptocurrency crash

ETH’s sharp decline on Friday (05) resulted in a large potential loss for Justin Sun, estimated at around $66 million. These gains were not realized because Sun did not sell his ETH, but the drop hindered future sales.

According to Spot On Chain, Sun’s extensive ETH holdings have been deeply affected by this crisis. The report showed that between February and June 2024, Justin Sun acquired 361,137 ETH through three wallets. These purchases occurred as follows:

  • February: purchases of 169,604 ETH, at an average price of $2,870;

  • April: 176,117 ETH purchased, average price $3,177;

  • June: Purchases of 15,416 ETH at an average price of $3,474.

Just a day before the crash, Sun was sitting on an unrealized profit of $58 million. However, in just 24 hours, it turned into a loss of $66 million. Meanwhile, these three wallets, which received Ethereum from Binance shortly after Sun’s stablecoin deposits, exemplify his active trading strategy.

Furthermore, Sun’s rapid market movements show both the opportunities and risks of high-risk crypto investments. Meanwhile, amid this setback, questions arise as to whether Justin Sun will remain committed to his strategy of acquiring BTC to minimize market fluctuations.

Bitcoin Buying Strategy in Check

While struggling with the loss of his ETH cryptocurrency portfolio, Sun also expressed his willingness to negotiate with the German government to buy his Bitcoin holdings. The Tron founder wanted to buy the BTC directly, without having to go through the exchange.

By doing so, Justin Sun intended to minimize future market disruptions by privately acquiring the government’s cryptocurrency holdings. But the market rout raises questions about whether the executive can keep his promise.

However, this proposal aims to avoid the potential price volatility that could arise from large-scale sales of Bitcoin by a government entity. Discussions are expected to explore terms that could facilitate a smooth transfer of these holdings, potentially altering market dynamics.

However, the recent market downturn raises questions about whether Justin Sun will remain committed to his plans. Notably, in the past 24 hours, the market witnessed massive liquidations, with 229,669 traders liquidated, totaling $639.42 million.

According to data from CoinGlass, the largest single liquidation order, valued at $18.48 million, occurred on the ETH/USDT pair on Binance.

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