BTC, ETH, SOL All Sink: Bitcoin OG’s $674M Leveraged Portfolio Turns Sour

This article was first published on Deythere.

Bitcoin leverage positions have re-entered the spotlight once again amid a renewed sell-off in major crypto markets, with one prominent early Bitcoin holder now sitting on more than $50 million in unrealized losses across heavily leveraged positions. 

According to Onchain Lens data, the wallet closely monitored as a “Bitcoin OG” has been sticking with large long stakes in BTC, ETH and SOL positions that have all turned heavily against it as prices declined mid-December 2025.

Digging Deeper Into the Unrealized $54M Bitcoin Leveraged Loss 

The so-called Bitcoin OG wallet is on the brink of a paper loss of nearly $54 million on approximately $674 million in long positions across BTC, ETH, and SOL, according to on-chain analytics platform Onchain Lens. 

That is a far cry from earlier this year, when the positions were reportedly up more than $119 million in paper gains before recent market weakness erased much of that performance. 

Here’s the positions breakdown: Trader has approximately 190,900 ETH at an average entry of $3,167, approximately 1k BTC entered around $91500 and 250k SOL entered in the $137 range.

At the current market pricing, liquidations and draw downs have moved the aggregate valuation such that the long exposure is now underwater.

The account is super vulnerable to downside moves because all of the positions are one-way longs, with no apparent hedge.

A typical margin usage ratio for these leveraged portfolios tend to be on the high side so even small changes in prices can lead to a large unrealized difference between the entry and current value.

Losses Fueled by Market Weakness and Price Action

The losses follow more generalized declines in crypto prices. Bitcoin trades around $86,000, and Ethereum had also subsided around $2,900, showing renewed stress in leading crypto barometers. These tumbles were accompanied by rising forced liquidations and a shift in sentiment to risk-off positioning among traders.

The market pullback is indicative of both crypto-related dynamics as well as general risk-asset price action. 

For instance, Bitcoin’s sub-$90,000 levels in early December were associated with bearish macro signals such as worries about earnings in technology stocks and interest rate prospects. 

These themes have led to volatility in the crypto space, and squeezes of leveraged positions.

Liquidation Surge and Leverage Unwinding

Data from derivatives tracking platforms confirm that liquidation across the crypto market has been on the rise. 

In the 24-hour period centered around mid-December, hundreds of millions of dollars were liquidated across the total network with long positions comprising the majority. 

Based on latest reports, over $295 million in liquidations occurred in a span of 24 hours, $235 million being longs such as large BTC and ETH liquidations. 

Of those, Bitcoin longs accounted for close to $93 million while Ethereum was about $44 million.

Further liquidation data does as well show that other market liquidations have followed this pattern, where occasional events wipe out clusters of leveraged exposure to price movements. 

These macro pressures from the broader markets illustrate why leveraged holders such as the Bitcoin OG wallet are under water despite holding blue-chip digital assets.

Fear and Stress Deep in the Market  Are Reflected in Sentiment Indicators

In relation to the technical price action and the liquidation dynamic, market sentiment indicators mirror  it. 

Indicators such as the Crypto Fear & Greed Index are deep in the dumps for December 2025, indicating maximum fear from market actors. 

Such readings have frequently correlated with sell-offs and substantial short-term volatility, especially in leveraged positions that are more prone to sentiment swings.

Over time, prolonged bouts of high fear levels can be associated with valuation resets in risk markets. In the current cycle, that sentiment pressure has been magnified by derivatives dynamics and heavily concentrated long positions without offsetting hedges.

As such, even holding the well-known assets such as BTC, ETH, and SOL has not saved highly leveraged holders from experiencing considerable paper losses.

Conclusion

The fact that a major early Bitcoin holder is logged with an unrealized $54 million loss on a long portfolio worth $674 million shows just how ugly leverage can get in choppy markets. 

Declines in Bitcoin, Ethereum and Solana have sent the bets underwater, with high levels of liquidations across exchanges indicating broader deleveraging pressures. The episode confirms that even big-name players with core crypto holdings are vulnerable when leverage encounters market volatility. 

Liquidations, sentiment and price pullbacks all feed into an environment in which leveraged losses are becoming more pronounced and consequential.

Glossary

Bitcoin leverage losses : Unrealized or realized losses on positions amplified by borrowed capital in Bitcoin and related derivatives.

Unrealized loss: A negative change in the value of an open position that has not been closed.

Margin usage: The proportion of available funds that the client has used in order to open leveraged trades.

Liquidation: Forcing the closure of a leveraged position when a margin call is not met.

Crypto Fear & Greed Index: An investor sentiment gauge that examines the market mood using price movement, volatility, and other factors.

Frequently Asked Questions About Bitcoin Leverage Losses

What does an “unrealized loss” mean here?

An unrealized loss represents the paper loss on positions that are still open, which becomes realized if positions are closed at the current market prices.

Why did the Bitcoin OG suffer so big a loss?

The loss comes from heavy leverage in longs covering BTC, ETH and SOL which went wrong for the trader as prices fell in December 2025.

Are these losses realized?

No. These are unrealized losses, in the sense that they only exist on paper until one closes the positions.

Did liquidations contribute to this?

Yes. The increased liquidations seen across crypto markets, including those of long positions, stands as part of the larger unwind story that factored into the drawdown.

What role does sentiment play in leverage losses?

Market sentiment, depicted by fear and greed indicators, can exaggerate drawdowns and price volatility for leveraged positions.

References

Cryptonews
The Economic Times
ChainCatcher
Reuters