- A whale secured $6.8M profit by leveraging BTC and ETH before Trump’s announcement.
- The trader closed positions after Trump revealed the U.S. Crypto Strategic Reserve.
- Speculations arose considering the precise closing time indicating insider knowledge.
A crypto whale made a $6.8 million profit by placing leveraged bets on Ethereum (ETH) and Bitcoin (BTC) just before President Donald Trump’s announcement regarding the U.S. Crypto Strategic Reserve. The trades were made using 50x leverage, a high-risk strategy that amplified the rewards significantly when the market surged after Trump’s declaration.
The trader took the considered best positions on Ethereum trades at 9:49 AM ET and bought hundreds of ETH futures between $2,190 and $2,202. It was just 35 minutes later at 10:24 AM ET, when Trump announced his plan for a U.S. Crypto Reserve, which includes Bitcoin, ETH, XRP, Solana, and Cardano. Following the announcement, the tokens surged wherein Bitcoin climbed above $90K.
Strategic Positioning Before the Announcement
As the market reacted to the announcement, the traders began closing their positions in phases, locking in much more profitable gains. Bitcoin positions were exited between $87,500 and $91,399, while Ethereum was sold above $2,270. By the afternoon, the trader had completely exited their positions, securing $6.8 million in profit. Using 50x leverage meant that even slight price movements could trigger more gains, making this series of trades particularly lucrative.
The accurate timing of the trader’s positions has raised many questions within the industry. Some analysts, such as Carl Runefelt, host of The Moon Show, said that there is a high probability that this might be an example of insider trading. The fact that the trader’s positions were opened just before the announcement with $200 million in leveraged positions has led to suspicions of some advantages in the access to information.
Additionally, this event highlights the volatility in the crypto space, mainly when driven by such important news. The announcement of a Crypto Strategic Reserve was the final outcome of weeks of analysis by the White House’s newly formed Working Group on Digital Assets, which Crypto Czar David Sacks and Executive Director Bo Hines lead. As market reactions unfolded, Bitcoin surged past $90,000, further fueling speculation about the probable lasting results of Trump’s initiative.
Related: Bitcoin Surges $94K as Trump Reveals Crypto Reserve Plan
Growing Concern Over High-Leverage Trading
The 50x leverage strategy was very profitable, further illustrating the high risks in crypto trading. A minor market downturn could have resulted in shocking losses, especially for those with positions like the whales. As high-leverage strategies continue to grow in popularity, they could set the stage for increased volatility and risks in the digital economy.
Investors are watching closely as Trump gets ready for the launch of the White House Crypto Summit on March 7. This conference, which is expected to discuss governance and regulatory advantages, may further shape the legal settings under the rule of law and might positively impact and change the current market dynamics.
