Vendas a descoberto de ouro na cadeia sofreram uma perda flutuante de 32 mil dólares, formando uma reversão de 1 para 2 em relação aos compradores longos

On-chain gold token market has experienced a dramatic reversal. The trader known as the “largest short on on-chain gold tokens” is paying the price for their short position in PAX Gold(PAXG), currently with an unrealized loss of $320,000. Meanwhile, their counterparty, the “largest long on on-chain gold,” has an unrealized gain of over $750,000. Behind this betting contest, the ongoing rise in gold token prices and the obvious shift in market sentiment are reflected.

Specifics of the Short Dilemma

Current status of the short position loss

According to on-chain data monitoring, this largest short currently holds the following position:

Short PAXG:

• Quantity: 2846.19 tokens
• Leverage: 5x
• Average entry price: $4525.95
• Current unrealized loss: $320,000

This loss scale is about 4% of the initial position size. Although 5x leverage is not extreme in crypto markets, sustained losses are already eroding their account equity.

They are also long BTC

Interestingly, this address is not purely bearish. According to the latest data, the trader also opened a long position of 7.71 BTC with 20x leverage today, at an average price of $94,489.2, currently with a small unrealized profit. This indicates they are not solely bearish but have diversified positions across different assets.

Sharp contrast with the largest long

From the comparison, it’s clear that the largest long used a lower entry price and smaller position but achieved a similar profit to the short (plus an additional unrealized gain of $484,000 from silver positions). This difference reflects divergent market participant judgments on the future of gold tokens.

Key support levels for PAXG price trend

Recent price performance

According to the latest data, PAXG is currently priced at $4636.02, up about 2.4% from the short position’s average entry price of $4525.95. More importantly, its recent upward trend:

• 1-hour increase: 0.15%
• 24-hour increase: 0.69%
• 7-day increase: 3.58%
• 30-day increase: 6.81%

This sustained upward movement is the direct cause of the short’s unrealized loss. Over the past month, PAXG has risen by 6.81%, exerting continuous pressure on short positions.

Market liquidity is ample

PAXG’s 24-hour trading volume reached $198.93 million, indicating sufficient market liquidity. Its market cap of $177 million ranks 46th in the crypto market. Such liquidity means that closing large positions is relatively manageable, but it also suggests that price volatility could intensify.

Deep reflection on market implications

Rising demand for gold tokens

The ongoing rise of PAXG reflects increasing demand for on-chain gold tokens. As a token pegged to physical gold, its price appreciation often indicates investor optimism towards gold assets. In the current macro environment, this trend carries significant implications.

Risks of high leverage re-emerge

This betting scenario vividly demonstrates the risks of high leverage. Even with 5x leverage, sustained unidirectional market movements can lead to significant losses. Meanwhile, the largest long using 20x leverage to go long BTC can realize unrealized gains, depending on BTC’s performance after entry. Leverage amplifies both gains and risks.

Divergence among market participants

The opposition between shorts and longs reflects differing judgments about the future trajectory of gold tokens. Currently, the bullish view appears more aligned with market reality. However, this divergence also indicates that the market still harbors contrasting opinions, which could lead to sharp volatility in extreme conditions.

Summary

The on-chain gold token market is experiencing a price rally and a shift in sentiment. The $320,000 unrealized loss of the largest short contrasts sharply with the $750,000 unrealized gain of the largest long, not only in numbers but also in market expectations for increased demand for gold tokens. Over the past 7 days, PAXG has risen 3.58%, and over 30 days, 6.81%, providing a direct explanation for the short’s losses. For market participants, this case reminds us that even seasoned traders can be mistaken, and high leverage requires cautious risk management. Future focus should be on whether PAXG can sustain this upward trend and how the largest short will handle the growing losses.