A crypto trader turned well-timed bets into $6.8 million after placing leveraged bets on Bitcoin and Ethereum before President Trump’s U.S. crypto reserve announcement on Sunday.
The trader, operating on decentralized derivatives exchange Hyperliquid, deposited $6 million in USDC and used 50x leverage for long positions in Bitcoin and Ethereum, according to on-chain analytics platform Lookonchain.
This risky strategy—a 2% price drop would trigger liquidation—paid off as the market surged post-announcement, allowing the trader to exit with substantial gains.
Strategic Market Timing Raises Questions
At 9:49 AM ET on Sunday, the trader aggressively increased Ethereum long positions, acquiring hundreds of ETH contracts priced between $2,190 and $2,202, according to analytics dashboard Hyperdash.
Just 35 minutes later, at 10:24 AM ET, Trump announced on Truth Social that his administration would create a U.S. Crypto Strategic Reserve, naming Bitcoin, Ethereum, XRP, Solana, and Cardano in this initiative.
Speculation remains on whether the trader acted with foreknowledge of this statement.
Regardless, the market reacted instantly to Trump’s announcement with Bitcoin surging past $90,000 while Ethereum exceeded $2,400. Both assets rose 10% and 14.6% respectively, reaching $94,378 and $2,540, according to CoinGecko.
This follows Trump signing an executive order on digital assets, establishing a Presidential Working Group to shape crypto policy and explore his campaign pledge of a Bitcoin reserve.
The surprising inclusion of XRP, Cardano, Solana, and Ethereum in the initiative sent prices soaring, particularly following months of regulatory rollbacks, with the SEC backing down from legal battles against major crypto firms like Coinbase and Robinhood.
$6.8 Million Profit in Phased Exits
As crypto prices surged, the trader closed positions in phases, securing profits while minimizing exposure to volatility. Bitcoin exits were executed between $87,500 and $91,399, while Ethereum was sold above $2,270 according to on-chain data.
By Sunday afternoon, the trader had fully exited the bulk of their positions, locking in $6.8 million in profit.
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