Bitcoin Bulls Beware: Wynn Bets Big Against The Rally
James Wynn, a high-risk, high-leverage trader, has started a 40x leveraged short position in Bitcoin in an attempt to counteract the current market upswing. Wynn’s audacious short trade occurs as market participants’ optimism is growing. Large long holdings in Bitcoin, Ethereum, and other cryptocurrencies are being stacked by crypto whales. This implies that there is broad optimism about the direction of the market.
Fed Rate Cut Hopes Ignite a Bullish Crypto Momentum
According to the data, the US Consumer Price Index (CPI) for September was lower than anticipated. Thus, Bitcoin and the entire cryptocurrency market saw a significant upswing. Investor attention has turned to this week’s much-awaited Federal Reserve rate announcement as inflation has decreased. The market is pricing in a rate decrease of almost 0.25%.
The crypto industry is already feeling the effects. The total value of the cryptocurrency market has increased by almost 7% in the last five days. Ethereum has crossed the $4,000 threshold, and Bitcoin has risen past $115,000. Major traders and institutions have increased their exposure due to the bullish mindset, taking large long positions across important assets in the hopes of a further rise. Wynn, though, has adopted a different strategy.
Bold 40x BTC Short: Reckless Gamble or Genius Move?
According to Lookonchain, Wynn claimed a 1,854.54 USDC referral incentive on October 27. After that, he initiated a 40x leveraged short position on 0.96 BTC on Hyperliquid, which was worth more than $110,000. According to Hyperdash’s most recent data, the trader’s unrealized profit stands at $661.38. $117,468 is the liquidation price.
But that figure is nothing compared to his history of astronomical losses. Due to a history of losing trades with excessive leverage, Wynn has accrued losses totaling more than $22 million. 33.33% of the time, he wins. Wynn continues to take large, risky bets despite having lost over $100 million trading on Hyperliquid, according to a previous BeInCrypto article. According to people close to Wynn, he has produced over $250 million in profits over the last two weeks using unidentified tactics, despite the losses painting a bleak picture.
I have sources close to @JamesWynnReal that have told me he has made $250,000,000+ in the past two weeks. All of his tweets on X have been a psyop. He is playing chess while you’re all playing checkers,
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