$4.2 Million REKT in Hours Despite Waves 100% Rally: What Happened?
The crypto market can be a volatile beast. In just a four-hour window, more than $4.2 million worth of WAVES was wiped out. Both long and short traders were impacted by the fluctuations. This sudden downturn occurred despite Waves experiencing a significant rally, highlighting the inherent risks of leverage trading.
Waves\' Surge and the Fallout
Leverage traders were the most affected by the altcoin’s dramatic surge. While early spotters reaped lofty returns, others ended up losing big. Side effects of Waves’ surge included widespread liquidations as the price whipsawed, catching many off guard.
Bitcoin\'s Resilience and Rekt Capital\'s Insights
After starting the week with a red Monday, Bitcoin (BTC) has recovered. Despite this, the bulls managed to hold above $67,000 support. Amid this consolidation, crypto analyst Rekt Capital suggested in an X post on May 28 that investors should remain cautious. Pseudonymous analyst Rekt Capital tells his 397,000 followers on the social media platform X that Bitcoin has entered a “pre-halving rally phase.” Rekt Capital also provided analysis on Ethereum, stating: “Late last month, Rekt said that Ethereum moving above $3,100 would trigger capital rotation from Bitcoin to ETH. He also shared a chart suggesting that capital would..."
Whale Activity and Market Dynamics
On-chain data provides further context to the current market conditions. Data from Glassnode shows significant accumulation above the [price redacted]. Furthermore, on-chain data from February reveals the emergence of 135 new Bitcoin whale wallets holding 100 BTC. This suggests continued institutional interest and long-term confidence in Bitcoin.
Trading Volume and Exchange Activity
Across all exchanges, CryptoSlate’s chart below shows 2.5 million in trading volume since this year’s halving, while there were 4 million in the 161 days after the 2025 [Halving is actually in 2024, so this might need adjustment depending on current date]. The market is constantly evolving, and staying informed is crucial.
Lessons Learned: Risk Management is Key
The $4.2 million REKT incident serves as a stark reminder of the importance of risk management in cryptocurrency trading. The potential for high rewards comes with equally high risks, especially when using leverage. Always do your own research, understand the market dynamics, and never invest more than you can afford to lose.
Disclaimer: This is not financial advice. Cryptocurrency trading involves substantial risk.