One crypto trader turned a high-risk, high-reward bet into a $7 million windfall on Hyperliquid, leveraging 50x just before Trump’s crypto reserve announcement. The trader strategically opened a 50x long position on Bitcoin (BTC) and Ethereum (ETH) just ahead of former President Donald Trump’s crypto reserve announcement on Sunday morning—a move that nearly ended in disaster before turning into a multi-million-dollar windfall.
Blockchain data reveals that the trader deposited $5.6 million USDC into Hyperliquid, using the funds to place a massive leveraged position worth over $200 million. By 9:37 AM Sunday, ETH teetered near liquidation; just a $54 drop would have wiped out $2 million.
Then, at 10:00 AM, Trump’s announcement of a U.S. strategic crypto reserve changed everything. The market immediately surged, with both Bitcoin and Ethereum seeing sharp price increases. The trader, who had been doubling down on long positions throughout the morning, seized the opportunity and closed their trades, securing $7 million in profits within a single day.
Interestingly, the trader exited their positions before the market reached peak levels. Later in the day, Trump clarified that BTC and ETH would be included in the strategic reserve, fueling an even greater rally. Bitcoin rose nearly 9% over 24 hours, while Ethereum saw an almost 10% increase.
Strategic Exits at Key Positions
While the trader secured an impressive $7 million profit, questions remain about whether they could have made even more had they held their positions longer. It’s unclear whether the decision to go long was purely speculative or based on some prior knowledge of Trump’s impending crypto reserve announcement. Either way, the market reacted instantly, with Bitcoin breaking past $90,000 and Ethereum surging above $2,400 following Trump’s statement.
On-chain data shows that as prices climbed, the trader began exiting positions in phases, likely aiming to lock in profits while reducing exposure to potential volatility. Bitcoin exits were between $87,500 and $91,399, while Ethereum positions were sold above $2,270.
By Sunday afternoon, the trader had fully exited the bulk of their positions, securing $7 million in profits. However, as Bitcoin continued its climb, reaching $94,378, and Ethereum pushed past $2,540, the trader potentially left additional gains on the table.
Leveraged Trading Risks and Market Impact
While this trader’s success story is remarkable, it also exemplifies the extreme risks of high-leverage trading in crypto. 50x leverage means that even a 2% price movement in the wrong direction could have resulted in a complete liquidation of the position. Many traders attempting similar strategies often end up losing their capital instead of securing profits.
The rise of high-stakes trading on platforms offering 20x, 50x, and even 100x leverage has contributed to both explosive price swings and liquidity issues in crypto markets. While some traders reap massive gains, others face devastating losses, often triggering cascading liquidations that amplify market volatility.
Quick Facts:
- A crypto trader made $7 million in a single day by going 50x long on BTC and ETH just before Trump’s crypto reserve announcement.
- Trump’s statement on a potential U.S. crypto reserve initiative triggered a market surge, fueling traders’ massive gains.
- The event exemplifies the influence of politics on crypto trading as investors increasingly react to regulatory signals.
