A trader on Hyperliquid, a decentralized perpetual swaps platform, leveraged a $5.6 million deposit to open 50x long positions on Bitcoin and Ethereum ahead of a highly anticipated announcement by President Donald Trump regarding a crypto strategic reserve. This move brought the total value of their positions to more than $200 million, catching the attention of blockchain analysts. Just hours before the announcement, the price of Ethereum had fallen to a point where the trader's position was at risk of liquidation, with ETH needing to drop by only $54 more to trigger a loss of over $2 million.
However, as Trump’s crypto reserve announcement came at 3 p.m. UTC on Sunday, the prices of Bitcoin and Ethereum surged, allowing the trader to close their positions and pocket $7 million in profits within 24 hours. The trader, who had been adding to their positions throughout the morning, missed the opportunity to benefit further when Trump clarified that Bitcoin and Ethereum would be included in the crypto reserve, causing prices to rise even more.
Bitcoin saw a nearly 9% increase in the 24 hours following the announcement, and Cardano, another token mentioned by Trump, gained a staggering 58%, outperforming both Bitcoin and Ethereum. Had the trader held their positions until this clarification, they would have made an even larger profit.
The use of leverage amplified the trader’s exposure, but also put them on the edge of liquidation, emphasizing the high-risk, high-reward nature of such trading strategies.
