The price of #bitcoin fell below the $105,000 zone on Friday, May 30, and some traders who held highly leveraged long positions at Bitcoin's price were adversely affected by the market situation. Thus, #trader , known as James Wynn, saw his positions in Bitcoin impacted. How did this happen, and how much did he lose just in this last week of Bitcoin's decline? Let's explore.
To put this trader in context, James Wynn is known in the crypto space for the leveraged trades he carries out. Perhaps one of the most well-known bets was his investment in #memecoin #pepe , which generated millions of dollars in profits.
It seems that luck didn’t last long, and upon seeing that Bitcoin was about to break new highs on May 20, Wynn decided to open a leveraged long position in Bitcoin with a leverage of x40 on the Hyperliquid perpetual platform. This position had a total value of $830 million, and the entry price was around $105,033 with a liquidation value of $100,363.
As observed, once the long position was established, Bitcoin continued to rise, having a profit of $14 million.
But the price of Bitcoin continued to rise with a new all-time high. Thus, on May 21, Wynn decided to up the ante by putting in more money, and this time the total value of the leveraged position reached $1 billion. As the price of Bitcoin was rising, his entry price changed to $107,994 and his liquidation value moved to $103,227.
He who risks nothing gains nothing. When Bitcoin broke $11,900, the x40 leveraged long position reached an unrealized gain of $39 million. It is worth mentioning that during this process, he decided to take some small profits, but he kept the majority of the position’s value.
On May 23, the market begins its descent. This trader had also opened long positions in ETH and SUI, but decides to close these at a loss (-$5.3 million) and puts everything into the long position in Bitcoin. The total value of the position was $1,192 million with a liquidation price of $104,820 (he still held a position in PEPE).
On May 24, he decides to close the long position in PEPE ($25 million in profits) and further increases his long position in Bitcoin, putting a total value of $1,254 million with a liquidation price of $105,180.
On the same day, May 24, he closed all his long position in Bitcoin, losing $13 million. But this was just the beginning.
As the long position didn't work, he decides to open short positions, the market rises, and he loses $15 million.
On May 26, he wants to try again and decides to open another super-leveraged position (x40) in Bitcoin for a total value of $75 million and a liquidation price of $103,120.
From here, the price of Bitcoin begins to fall more, and to keep his position from being liquidated, he decides to put in more money to cover himself. But history repeats itself, and he gets liquidated. Over the course of the days, he opens more positions, but mostly loses them.
Currently, he has an open position in Bitcoin with an entry at $105,554 and a liquidation price of $103,560 (he is already losing -$500k).
Do you think I should keep trying?
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