Crypto Trader James Wynn Returns With 40x Leveraged Bitcoin Long Worth $19.5 Million

Multimillionaire cryptocurrency trader James Wynn has made a notable return to the market with two significant leveraged positions. His first position is a 40x leveraged Bitcoin (BTC) long worth over $19.5 million, entered at a price of $117,000. This position is at risk of liquidation if the price of Bitcoin falls below $115,750. Wynn has already incurred $1.4 million in funding fees to maintain this position, which currently has an unrealized profit of $78,000. His second position is a 10x leveraged long on the popular Pepe (PEPE) memecoin, worth over $102,000, opened at $0.01201. The liquidation price for this position remains unknown.

Wynn's return to the market comes after several previous liquidations, which he claimed were deliberately targeted by crypto market makers aiming to sink Bitcoin’s price below his liquidation threshold. Despite these setbacks, Wynn's renewed confidence in Bitcoin’s near-term upside momentum is evident in his latest positions. Wynn rose to prominence among crypto enthusiasts at the end of May after his first leveraged $100 million position was liquidated on May 30, when BTC briefly dipped below a 10-day low of $105,000. He subsequently opened a second leveraged $100 million Bitcoin bet on June 3, only to be liquidated and lose nearly $25 million on June 5.

Wynn has been vocal about his belief that major market participants are orchestrating efforts to target his liquidation levels. In a June 2 post, he wrote, “They’re coming for me again,” and urged his followers not to let “these evil bastards liquidate me.” Wynn's latest positions illustrate the heightened risks associated with leveraged trading, which uses borrowed money to increase the size of an investment, thereby amplifying both gains and losses. For instance, a crypto whale was liquidated for over $308 million on a 50x leveraged position in March when Ether’s (ETH) price fell below its liquidation price of $1,877.

Wynn has also expressed his view that market makers are “out of gun powder,” suggesting that their efforts to manipulate the market may be waning. In a recent post, he wrote, “Beautiful timing for a 40x long. Never financial advice of course. But the MM’s are out of gun powder.” This sentiment reflects Wynn's optimism about the current market conditions and his belief in Bitcoin’s potential for near-term gains.

While Wynn's positions indicate a bullish outlook on Bitcoin, not all traders share this view. Popular trader Qwatio opened a 40x leveraged short position worth over $2.3 million, effectively betting on Bitcoin’s price decline. Qwatio has previously been liquidated eight times within a week, losing a total of $12.5 million across its leveraged positions. This divergence in trading strategies highlights the varying perspectives within the cryptocurrency market and the inherent risks associated with leveraged trading.

The recent movements in the cryptocurrency market, including Wynn's leveraged positions and the fluctuations in PEPE's price, underscore the dynamic and volatile nature of the industry. As traders continue to navigate these challenges, the outcomes of their strategies will shape the market's trajectory in the coming weeks and months. Wynn's return to the market with significant leveraged positions signals his confidence in Bitcoin’s near-term upside momentum, despite the risks involved in leveraged trading. His belief that market makers are “out of gun powder” adds an interesting layer to the market dynamics, suggesting that the efforts to manipulate the market may be diminishing. The contrasting views of traders like Qwatio, who are betting on a price decline, further illustrate the diverse strategies and perspectives within the cryptocurrency market. As the market continues to evolve, the actions of these traders will play a crucial role in determining its future direction.