High leverage trader James Wynn warns to be cautious of "black swan events" and has significantly reduced his holdings in altcoins. He emphasizes hedging and cash flexibility to strengthen risk management, which is somewhat ironic. (Background: $4 million profit in two months, revealing that James Wynn, who has never faced liquidation, is a "hedging maestro") (Context: Mysterious whale goes long on Bitcoin with $300 million at 20x leverage, is the anonymous return of James Wynn?) Bitcoin price before the deadline is $106,846, with a slight drop of only 0.3% in the past 24 hours, but market sentiment remains tense. Just early Tuesday morning, cryptocurrency trader James Wynn, who has over 200,000 followers, posted on X (formerly Twitter) that he has cut back on altcoin spot holdings and initiated hedging, stating that "a black swan is approaching." This comment immediately raised caution in the investment community. "I am currently hedging my long positions. I have closed many altcoin spot positions, and if a black swan event occurs, I am ready to invest all my funds. Do not fear what is about to happen. Accept it, be prepared, and execute the plan." Listen up, We will have some kind of 'covid-like' black swan event within the next 48hrs as the war escalates. Fear will ripple across all financial markets as the news cascades across the world. The smartest of the smartest money will be buying your fear, because they… — James Wynn (@JamesWynnReal) June 17, 2025 Wynn's history of high leverage Wynn is known for trading with leverage between 5x to 40x, and previously lost $60 million in a week when U.S. President Trump threatened tariffs, causing Bitcoin to plummet unexpectedly. After that event, he adjusted his strategy, increasing short positions in options and futures, and setting strict stop losses. This time, Wynn's mention of the black swan brings back painful memories for the market. He admitted in May that timing is often more important than direction, "Cash is ammunition; don’t wait until you run out of bullets to regret." How do crypto investors usually hedge? In the face of unknown shocks, both institutions and retail investors commonly use the following three tools: Options protection: Buying put options can lock in downside risk. Bitget has previously pointed out that premiums usually account for 2% to 5% of the position, making costs controllable. Futures hedging: Shorting perpetual contracts is the most active hedging action on exchanges, especially when the fear index rises above 60. Diversification and dynamic rebalancing: Kraken research shows that converting 20% of the portfolio into stablecoins can reduce overall volatility by a third. Related reports: Full text of U.S. Vice President Harris's speech at the Bitcoin conference: BTC is the best political hedge asset, with 50 million Americans holding it and supporting stablecoin legislation. EU plans stress tests on "non-bank institutions": Hedge funds & pension funds, insurance industry may become financial landmines, can blockchain help? Wall Street 30-year strategy analyst: The logic of hedging with debt, currency, and Bitcoin. "James Wynn is waiting for a black swan event: I have significantly reduced my altcoin positions, cash is ready for an All-in" This article was first published on BlockTempo (The most influential blockchain news media).

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