Crypto Whale Profits $7 Million by Placing 50x Leverage Long Positions on Bitcoin and Ether Before Trump’s Crypto Reserve Announcement
Market Analysis
A crypto whale has reportedly profited nearly $7 million by placing hundreds of 50x leverage long position bets on Bitcoin (BTC) and Ether (ETH) before US President Donald Trump’s announcement of the Crypto Strategic Reserve. The whale deposited $5.9 million in USD Coin (USDC) on a decentralized derivatives exchange, Hyperliquid, on March 1 to place the long positions.
The Trade
According to crypto analytics platform HyperDash, the whale placed their first Ether long position on March 2 at 2:49 pm UTC, just 35 minutes before Trump’s announcement. The whale’s positions from Ethereum wallet address "0xe4d31c2541a9ce596419879b1a46ffc7cd202c62" started closing 16 minutes after Trump’s announcement, with some speculating whether insider trading was involved.
The Profit
The whale used around $4 million to create $200 million worth of positions with the 50x leverage. Most of the positions have now been closed, resulting in a profit of over $6.8 million, according to HyperDash.
Insider Trading Speculation
Industry pundits have raised questions about the possibility of insider trading, given the whale’s extraordinary profit. The 50x leverage meant that a 2% price fall in Bitcoin or Ether would have triggered liquidation. The founder and host of The Moon Show, Carl Runefelt, stated, "This $200 million long on Bitcoin and Ethereum before the Bitcoin strategic reserve announcement, could be the biggest INSIDER TRADE I’ve ever seen. Smells illegal."
Additional Context
The Crypto Strategic Reserve follows weeks of evaluation from the President’s newly formed Working Group on Digital Assets, led by executive director Bo Hines and David Sacks, the White House’s AI and crypto czar. Trump is set to host the first White House Crypto Summit on March 7, inviting industry leaders to discuss regulatory policies and stablecoin oversight, among other things.
Conclusion
The crypto whale’s astonishing profit raises questions about the fairness and integrity of the market. While the whale’s actions may be legal, the controversy surrounding the trade highlights the need for greater transparency and regulation in the crypto space.
FAQs
Q: What is the Crypto Strategic Reserve?
A: The Crypto Strategic Reserve is a newly announced initiative by the US government to evaluate the potential of digital assets, including cryptocurrencies like Bitcoin and Ether.
Q: How did the whale make such a profit?
A: The whale placed hundreds of 50x leverage long position bets on Bitcoin and Ether before the announcement of the Crypto Strategic Reserve, resulting in a profit of over $7 million.
Q: Is this an example of insider trading?
A: Some industry pundits have raised questions about the possibility of insider trading, given the whale’s extraordinary profit. However, the exact circumstances surrounding the trade are still unclear.
Q: What is the significance of the Crypto Strategic Reserve?
A: The Crypto Strategic Reserve has the potential to shape the future of the crypto space, with the US government evaluating the potential of digital assets and considering regulatory policies to ensure their stability and security.
