James Fickel, the prominent founder of the Amaranth Foundation, is grappling with significant losses in his $ETH/$BTClong position as the pair plummets to levels not seen since April 2021. According to on-chain data, Fickel is facing an eye-watering loss of over 23,000 $ETH, worth approximately $57.9 million, as the $ETH/$BTCrate tumbled to 0.03685. This marks a sharp downturn in the market, erasing nearly 57.88% of his portfolio value.

James Fickel (@jamesfickel) is losing over 23K $ETH($57.9M) on his $ETH/$BTClong position as the pair hits its lowest since April 2021!

Notably, after the rate fell to 0.037 over the last 2 days, James Fickel further swapped 4,418 $ETH($11.13M) for 166 $WBTC, reducing his… https://t.co/qShcXm4wgr pic.twitter.com/LqQbwHuQ7g

— Spot On Chain (@spotonchain) October 25, 2024

In response to the $ETH/$BTCdecline, Fickel has been actively reducing his exposure to Ethereum. Over the past two days, after the pair fell to 0.037, he executed a significant swap of 4,418 $ETH, worth around $11.13 million, for 166 WBTC (Wrapped Bitcoin). This follows a similar move 37 days earlier, where he also trimmed his $ETHposition.

The latest transactions on his portfolio show that Fickel still owes 1,116.6 WBTC, valued at approximately $75.5 million, on the lending platform Aave. In a potential sign of further repositioning, he recently requested to withdraw 4,731 $ETHfrom Lido, suggesting more swaps could be on the horizon.

Loan Repayment Strategy

Once a fervent supporter of $ETH/$BTClongs, Fickel has shifted strategy since mid-August. On August 11, he began unwinding his positions, swapping 15,000 $ETH, worth about $37.4 million at the time, alongside 12 million USDC to secure 841.7 WBTC, valued at $49.4 million. His aim appears focused on repaying his substantial loan on Aave, where he borrowed a significant amount of WBTC.

Fickel’s most recent swap involved exchanging 5,000 $ETH, valued at $11.3 million, for 204.8 WBTC at a rate of 0.041 over the past six days. The series of transactions underscores his intent to mitigate losses by reducing Ethereum exposure and repaying his obligations in Bitcoin.

Despite his efforts to manage the downturn, James Fickel still has a considerable loan outstanding. He currently holds 2,236 WBTC, worth around $130 million, in borrowed assets. As the $ETH/$BTCpair continues to struggle, the question remains whether Fickel’s risk management will suffice to stave off further losses in the volatile market.

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