On Sunday, a statement from former President Donald Trump regarding a national crypto reserve triggered a surge in cryptocurrency markets. Prior to this unexpected announcement, a clever trader predicted an upswing in the values of Bitcoin (BTC) and Ethereum (ETH), executing high-leverage trades that resulted in substantial financial gains. Within just 24 hours, this trader celebrated an impressive profit of $7 million on the Hyperliquid trading platform.

How Did the Trader Leverage Their Position?

Data indicates that the trader initiated their strategy with a deposit of $5.6 million USDC, establishing large positions on Hyperliquid. By employing an aggressive 50x leverage, they built a total exposure of $200 million in Bitcoin and Ethereum, a move that captured the attention of market observers.

What Risks Did the Trader Face?

On the same day, Ethereum’s price decline posed a significant risk to the trader’s holdings. Had ETH dropped by just $54 at a specific time, the trader would have faced a potential $2 million liquidation loss. However, Trump’s announcement shortly afterward reversed the trend, pushing crypto prices higher and benefitting the trader immensely.

• Trader initiated position with $5.6 million USDC.
• Utilized 50x leverage to create a $200 million exposure.
• Trump’s announcement led to a $7 million profit.
• Risk of liquidation loomed before the announcement.
• Market response was swift, favoring the trader.

Following the price increase, the trader effectively closed their positions, securing a remarkable $7 million profit. Although holding on longer could have resulted in even greater gains if Trump had elaborated on the inclusion of these cryptocurrencies in the reserve plan, this daring venture still made waves in the crypto community.