Massive Leverage and a Bold Move
A daring trader on the decentralized derivatives platform Hyperliquid made headlines by leveraging a staggering 50x to open a long position worth $200 million on Bitcoin (BTC) this past Sunday. This gamble, made just before a significant announcement from U.S. President Donald Trump regarding the nation’s crypto reserve, paid off handsomely, resulting in a profit of approximately $6.8 million.
Risky Collateral and Near Liquidation
To execute this high-stakes trade, the trader utilized $4 million in collateral. The entry point for the position was set at $85,908, with a precarious liquidation price of $84,752. This meant that the position was only a $50 fluctuation away from being liquidated, showcasing the immense risk involved in such a leveraged bet.
Bitcoin Soars Amid Market Rally
In a surprising turn of events, Bitcoin experienced a remarkable surge of over 11%, climbing from $85,000 to a peak of $97,255 shortly after Trump’s announcement on the social media platform Truth Social. Although the trader made a significant profit from BTC, other cryptocurrencies like ADA and XRP outperformed, with gains of 47% and 18% respectively, leading some to speculate whether the trader had backed the right asset.
Unexpected Inclusion of Other Cryptocurrencies
Trump’s announcement caught many market watchers off guard, particularly due to the inclusion of cryptocurrencies such as XRP, SOL, and ADA in the U.S. crypto reserve. Industry leaders like Coinbase CEO Brian Armstrong and Bitwise CEO Hunter Horsely expressed their surprise, having initially believed that the reserve would be limited to Bitcoin alone. Meanwhile, the communities around Ripple and Cardano celebrated their unexpected victories on social media.
Speculation About Insider Knowledge
In the aftermath of the announcement, some skeptical social media users raised questions regarding whether the trader might have had insider information about the reserve. However, it remains unclear if the position was intended as a hedge or if the trader believed that Bitcoin had reached its bottom after experiencing a correction from a high of $109,000 to a low of $78,000 in the weeks following Trump’s inauguration.
Profit Realized and Position Closed
Ultimately, the trader decided to close the long position, realizing an impressive profit of around $6.8 million. This bold move underscores the volatile and unpredictable nature of cryptocurrency trading, where fortunes can be made—and lost—in the blink of an eye.
