Investors profit over one million USD by adopting a contrarian strategy through holding multiple types of metal assets

According to the latest observation by on-chain analyst Ai Yi on the X platform, a savvy trader successfully made over $1,027,000 in profit by skillfully employing asset allocation strategies during a significant crypto market pullback. This case demonstrates how effective risk management can be achieved through diversified positions in various types of precious metals during high volatility periods.

Market Background: Crypto Market Drop Presents Opportunities

Recently, the crypto market experienced a notable correction. Bitcoin (BTC) fell below $66,000, and Ethereum (ETH) dropped below $1,900. In this environment, traders holding short positions gained substantial profits. The investor capitalized on this market imbalance by diversifying across different types of precious metals to maximize returns.

Hedging Strategy: Balanced Multi-Asset Allocation

This case highlights the core logic of professional traders—holding multiple precious metals assets, including gold (GOLD), while establishing short positions in cryptocurrencies. The benefit of this hedging strategy is that when one market declines, gains in another can offset losses partially or entirely, or even generate absolute profits.

As BTC and ETH continued to decline, the trader’s crypto short positions expanded their profits. Meanwhile, precious metals assets (especially gold positions), as traditional safe-haven instruments, provided stability to the overall portfolio.

Closing Details: Elegant Exit of Gold Position

Most notably, the trader executed a successful exit from the gold (GOLD) position, realizing a profit of $125,000. This move indicates that after securing significant gains, the trader chose to take profits. Currently, the remaining position is still valued at $2,623,000.

This operational rhythm shows that the trader not only accurately identified market opportunities but also understood the importance of position management at the right moments. By closing positions in stages, locking in profits while maintaining exposure to further declines, the trader exemplifies professional risk management skills.

Precious metals assets played a vital role in this portfolio, serving as a reminder that diversification is effective not only in traditional finance but also in the crypto era.