A cryptocurrency trader earned a massive $6.8 million profit after placing strategic leveraged positions on Bitcoin and Ethereum. The trades were executed shortly before US President Donald Trump revealed plans for a Crypto Strategic Reserve, raising questions about market timing and potential insider knowledge.

Perfectly Timed Market Entry Raises Eyebrows

The anonymous trader deposited $5.9 million in USD Coin on decentralised derivatives exchange Hyperliquid on March 1. They began positioning themselves in the market with their first Ethereum long position on March 2 at 2:49 pm UTC.

Just 35 minutes later, Trump announced the Crypto Strategic Reserve on Truth Social. This announcement immediately triggered a substantial market surge, with both Bitcoin and Ethereum prices skyrocketing.

The trader used approximately $4 million to create $200 million worth of positions with 50x leverage. This high-risk strategy would have resulted in liquidation with just a 2% price drop. Instead, the market moved dramatically in their favour.

Massive Gains Through Strategic Exit Strategy

The trader executed a disciplined exit strategy, closing Ethereum positions just 16 minutes after Trump’s announcement. Bitcoin positions, initially opened when BTC traded around $86,033, were closed between $87,512 and $91,399.

Interestingly, some Bitcoin positions were closed before Trump’s announcement. By Sunday afternoon, the trader had fully exited most positions, securing the $6.8 million profit, according to analytics platform HyperDash.

Industry Speculation About Insider Trading

The precise timing of these trades has fuelled speculation within the cryptocurrency community. Carl Runefelt, founder of The Moon Show, called it “the biggest INSIDER TRADE I’ve ever seen” and suggested it “smells illegal.”

However, some analysts have offered alternative perspectives. One researcher noted, “It’s possible for an insider to know the tweet is coming but not know the exact contents of the tweet.”

The 50x leverage employed made these positions extremely risky, which some argue points toward privileged information. Nevertheless, no concrete evidence of insider trading has emerged.

Trump’s Phased Crypto Reserve Announcement

President Trump’s announcement came in two distinct phases. His initial post confirmed only XRP, Solana, and Cardano’s inclusion in the reserve. Almost two hours later, Trump clarified that Bitcoin and Ethereum would be at the “heart of the reserve.”

Between these announcements, cryptocurrency prices were rising, though Bitcoin and Ethereum didn’t initially surge as dramatically as the other mentioned tokens. This phased announcement adds another layer of complexity to the timing analysis.

Market Impact Following the Announcement

Following Trump’s announcement, the cryptocurrency market experienced significant growth. Bitcoin surged beyond $90,000 while Ethereum climbed above $2,400. Within a day, they reached $94,378 and $2,540 respectively, representing increases of 10% and 14.6%.

The announcement’s market impact demonstrates the significant influence that government policy and high-profile endorsements can have on cryptocurrency valuations. This price movement enabled the trader’s substantial profit.

Future Implications for Cryptocurrency

The Crypto Strategic Reserve announcement follows weeks of evaluation by the President’s Working Group on Digital Assets. This group is led by executive director Bo Hines alongside David Sacks, the White House’s AI and crypto czar.

Trump has scheduled the first White House Crypto Summit for March 7. Industry leaders will meet with the Working Group to discuss regulatory policies and stablecoin oversight. This meeting may provide further insights into the administration’s cryptocurrency approach.

The incident highlights the volatile nature of cryptocurrency markets and their susceptibility to significant price movements based on government announcements. As regulatory frameworks continue to evolve, market participants will be watching closely for signals about the future landscape of digital asset policy.

Disclaimer: This content does not have journalistic/editorial involvement of Trade Brains Team. Readers are encouraged to conduct their own research before making any decisions.
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