Trader Profits $6.8M from Leveraged Bitcoin and Ether Bets Ahead of Trump’s Crypto Reserve Announcement

A crypto whale has profited a staggering $6.8 million from a series of leveraged long positions in Bitcoin and Ether, placed just before US President Donald Trump’s announcement regarding a Crypto Strategic Reserve on March 2.

Whale's Strategic Bets Yield Massive Profits

According to crypto analytics platform HyperDash, the trader deposited $5.9 million in USD Coin (USDC) on March 1, using decentralized derivatives exchange Hyperliquid to place leveraged bets. The whale then strategically entered positions on both Bitcoin (BTC) and Ether (ETH), with significant leverage.

On March 2 at 2:49 PM UTC, the whale opened their first long position on Ether. Just 35 minutes later, Trump announced the Crypto Strategic Reserve, which included Bitcoin, Ether, and several altcoins. This triggered a surge in market prices, with the whale’s positions gaining substantial value.

Around $4 million of the whale’s capital was used to open $200 million worth of positions using 50x leverage. The Ethereum positions started closing just 16 minutes after Trump’s announcement, with many speculating that the rapid movements may indicate insider knowledge.

Bitcoin Positions Also Profitable

The whale also placed Bitcoin long positions on March 1 at 10:44 PM UTC, when Bitcoin was priced at approximately $86,033. These positions were then exited between $87,512 and $91,399, with some trades closing before Trump’s official announcement about the reserve.

The trader’s leverage meant that even small price movements would have triggered large gains. The positions were closed with a total profit of $6.8 million, with most of the profits coming from the post-announcement surge.

Insider Trading Speculation

The whale’s ability to place significant leveraged positions just ahead of the announcement has raised eyebrows, leading to speculation that insider trading may have been involved. With 50x leverage, even a 2% price move could have resulted in liquidation, making the trader’s moves appear highly coordinated with the announcement.

Carl Moon, founder and host of The Moon Show, called the timing of the trades “the biggest insider trade I’ve ever seen,” adding that it “smells illegal.” Other crypto enthusiasts speculated that the trader could have known about the tweet but not the exact details, while some suggested that the trader might have focused on other tokens if they were aware of the full content of the announcement.

Trump’s Crypto Reserve Plans

Trump’s initial announcement on March 2 mentioned XRP, Solana, and Cardano as part of the US Crypto Strategic Reserve. However, nearly two hours later, he confirmed that Bitcoin and Ether would also be at the “heart of the reserve.” This second confirmation triggered the massive market movements that significantly boosted the prices of both Bitcoin and Ether.

Looking Ahead

The Crypto Strategic Reserve comes after weeks of evaluation by the President’s newly formed Working Group on Digital Assets, led by Bo Hines and David Sacks. Trump is set to host the first White House Crypto Summit on March 7, where industry leaders will meet with the group to discuss regulatory policies, stablecoin oversight, and other issues.

As Bitcoin and Ether prices continue to fluctuate in the wake of these developments, the market remains keenly focused on the upcoming summit and the potential for further regulatory action and policy announcements.