High-Stakes Crypto Drama: Wynn’s Bold Return to Bitcoin Trading
In a surprising comeback, multimillionaire cryptocurrency trader James Wynn is once more diving into the tumultuous waters of Bitcoin trading, despite having faced several liquidations previously. This move suggests Wynn has a renewed belief in Bitcoin’s short-term potential for growth.
Wynn’s New High-Leverage Positions
Wynn is making headlines with two fresh leveraged trades. One of those is a daring 40x leveraged long position on Bitcoin (BTC), valued at over $19.5 million, with an entry point of $117,000. This position is dangerous, because it could possibly be worn out if Bitcoin’s price dips below $115,750. So far, Wynn has shelled out $1.4 million in funding fees to maintain this position alive, which is currently showing an unrealized profit of $78,000.
His second gamble is on the favored memecoin, Pepe (PEPE), with a 10x leveraged long position valued at over $102,000, initiated at a price of $0.01201. However, the precise liquidation threshold for this position stays elusive, as per data from Hypurrscan.
A Notorious Past in Crypto Circles
Wynn shot to fame within the crypto community in late May following a dramatic liquidation of his first $100 million leveraged position when Bitcoin briefly plummeted below $105,000. Undeterred, he took one other shot with a $100 million leveraged Bitcoin position on June 3, only to face one other liquidation on June 5, leading to a $25 million loss.
Wynn has voiced concerns that his liquidation points are being intentionally targeted by influential market players. In a June 2 post on X, he lamented, “They’re coming for me again,” urging his followers to face by him against what he perceives as a coordinated attack.
The Perils of Leveraged Trading
Leveraged trading, which involves borrowing funds to amplify investment size, can significantly magnify each gains and losses, adding a layer of risk that far exceeds typical investment strategies. Illustrating these dangers, a crypto whale was liquidated to the tune of $308 million on a 50x leveraged position back in March when Ether (ETH) dipped below $1,877.
Market Makers Losing Momentum?
Previously, Wynn accused crypto market makers of strategic efforts to push Bitcoin’s value under his liquidation threshold. However, his recent optimism is clear in a recent post where he declared, “Beautiful timing for a 40x long.” He added confidently, “Never financial advice of course, but the MMs are out of gun powder,” indicating his belief that these market players is likely to be running out of steam.
Contrasting Strategies: Betting Against Bitcoin
Not everyone shares Wynn’s bullish outlook. Known trader Qwatio is placing bets in the other way, with a 40x leveraged short position price over $2.3 million, banking on Bitcoin’s price decline. This strategic play was highlighted by blockchain analyst EmberCN via Hyperdash data.
Interestingly, Qwatio has experienced significant losses recently, being liquidated eight times in a single week, totaling $12.5 million in losses, as reported by Cointelegraph at the top of June.
Memecoin Movements
Meanwhile, PEPE has seen a slight dip of over 3% previously 24 hours, in accordance with CoinMarketCap, but appears to be on a path to recovery.
