Just after Bitcoin hit a new all-time high of $112,000, a bold move caught everyone’s attention. James Wynn, a high-profile crypto trader and risk-taker, has opened a massive short-term Bitcoin trade with 40x leverage. With $1.27 million on the line, Wynn is betting that Bitcoin’s price is about to drop.
But does this mean another correction is coming soon?
James Wynn Short Bitcoin With 40x Leverage
According to Lookonchain, James Wynn just put 27,522 USDC into Hyperliquid and picked up nearly $4,000 in referral rewards. He then used the money to open a 40x leveraged short on Bitcoin, betting that the price would drop.
With this much leverage, even a small drop could give him big profits, but if Bitcoin rises instead, he could lose it all fast.
Right now, Wynn’s short is worth 11.45 BTC, or about $1.27 million. If Bitcoin climbs past $112,360, his trade will be liquidated. Meanwhile, this risky bet comes as Bitcoin keeps testing $112,000.
While many traders see this level as strong support, Wynn thinks a price drop is near.
Bitcoin Could Dip Before Surge
Meanwhile, Popular crypto analyst Crypto Jelly shared an hourly Bitcoin chart showing that the world’s top crypto is dipping slightly, but there might be a bounce waiting just around the corner.
In his shared chart, Bitcoin touched a $112,000 level recently but is now drifting around the $110,700 mark. The white line Crypto Jelly drew hints at a possible small drop before a sharp bounce that could push Bitcoin back up near $109,300 and beyond.
As of now, Bitcoin is trading around $110,815, reflecting a jump of 1.5% in the last 24 hours.
The recent OM collapse at MANTRA has left the community confused. In a series of instant drops, $5.5 billion was erased. According to several analyses, the incident was caused by one trader manipulating two exchanges.
This whole incident highlights the fragility of many token projects. Despite an ostensibly huge market cap, a comparatively tiny amount of liquidity triggered a complete collapse.
According to a new analysis, the initial trigger of the OM crash was a single trader:
“This was due to an entity(s) on Binance perpetuals market. That’s what triggered the entire cascade. The initial drop below $5 was triggered by a ~1 million USD short position being market sold. This caused over 5% of slippage in literal microseconds. That was the trigger. This seems intentional to me. They knew what they were doing,” he stated.
After triggering this initial anomaly, this OM trader continued dumping short positions at five-second intervals, which powered the overall crash. As these continual dumps continued on Binance, the OKX spot market saw a discount of nearly 20%.
This strange behavior on OKX was caused by a massive whale. A limit sell order allows the seller to specify the minimum price they are willing to sell a crypto asset for. The order will only execute if the market price reaches or exceeds the limit price. Until then, the order remains open in the order book.
This person single-handedly kept the price fixed on OKX for over a minute, causing market makers and arbitrage bots to buy the assets despite panic selling in the broader market. By this method, the perpetrator was able to dump OM tokens while the crash was underway.
The issue, then, is not that OM fell because of a nefarious actor trying to engineer a crash. Instead, the problem is that a single entity could manipulate the markets so thoroughly.
For an attack like this to work, OM’s ostensible market cap had to be substantially more fragile than anticipated.
Many people hesitating about meme coins reaching billions, or even the $100B dream target.
1) People have forgotten than majority of retail, even with good degrees and high IQ, think that a $0.00001 token is cheaper than other that is $0.10. They don’t understand market cap.
In other words, even though OM’s market cap was theoretically very high, it took a comparatively small investment to crash the RWA token like a house of cards. Some have even speculated that this trader wasn’t even trying to cause a crisis.
Rather, they may have been investors who were forced to sell due to loan terms or risk limits. Some slight manipulation could’ve led to a larger catastrophe.
DeFi Dev Corp has extended its meteoric streak of Solana acquisitions, scooping 153,225 SOL to become the largest public holder of the native token. The company has its sights on stacking 1 million SOL armed with cash from its previously announced convertible note offering. DeFi Dev Corp’s SOL Holdings Reach $133 Million According to a
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see what analysts say about Bitcoin amid the showdown between BTC behemoth Strategy (formerly MicroStrategy) and Jack Mallers’ investment firm, 21 Capital. With their Bitcoin models coming into question, is there a specific definition of what winning means in Bitcoin?
Strategy Grows Bitcoin Stockpile, Buys $1.42 Billion in BTC
Strategy announced that it recently purchased another 15,355 BTC worth approximately $1.42 billion at an average price of $92,737 last week.
The firm currently holds 553,555 BTC, valued at approximately $52.7 billion. The average buying price is $68,459, and the unrealized profit is $14.8 billion.
“By continuing to grow its Bitcoin holdings, the company maintains its status as a major force in the cryptocurrency market, drawing interest from investors and industry analysts. Strategy is the largest Bitcoin Treasury Company, an independent, publicly traded business intelligence company, and a Nasdaq 100 stock,” Phoenix reported.
A recent US Crypto News publication highlighted the advent of 21 Capital. The Bitcoin investment firm sprouted after Cantor Fitzgerald, SoftBank, Tether, and Bitfinex pooled $3 billion in capital.
Based on sentiment, this new venture could inadvertently challenge Strategy’s position at the helm of corporate Bitcoin ownership in a model sense. According to 21 Capital, Strategy size could make increasing its Bitcoin per share difficult, a metric investors tend to consider.
Amid chatter that 21 Capital could threaten the Michael Saylor-led firm, BitStrategy, a shareholder at Strategy, challenged the prospective market rival’s business model.
Tension Grows in Bitcoin Treasury Space
In a detailed post on X (Twitter), BitStrategy acknowledged the brewing tension in the Bitcoin treasury arena. However, it holds that Strategy is way ahead of the competition.
“Their company is in direct competition with ours, and they seek to exploit a perceived vulnerability in our structure, openly highlighting their strengths relative to ours to win investment,” BitStrategy challenged in a recent post.
Beyond BTC Yield, also reported in a recent US Crypto News publication, the firm initiated key performance indicators months ago- BTC Gain and BTC $ Gain.
Bitcoin Gain multiplies the BTC Yield by Strategy’s aggregate balance, reflecting the scale of the firm’s operations.
Bitcoin $ Gain takes this further, converting the BTC Gain into dollar terms, for added transparency.
This proactivity by Strategy suggests a commitment to defend its position as a leading Bitcoin-holding corporation amidst rising rivals.
“You can fake an impressive BTC Yield. You cannot fake an impressive BTC Gain,” BitStrategy chimed.
However, analyst KenjiKoshu argues that while Strategy may show substantial Bitcoin gains, smaller companies like 21 Capital could achieve higher Bitcoin per share.
“As someone who has done deep thinking about why MSTR is undervalued, it might be true BTC gain can still be substantial if not higher for MSTR. On a per-share basis, however, which would be what supports the stock; it will be hard to deny a smaller, similarly reputable company is going to make more Bitcoin per share when on the same strategy,” the analyst wrote.
This outlook aligns with sentiment from 21 Capital that Strategy’s large size impedes increasing its Bitcoin per share.
However, BitStrategy articulated that the point of BTC Gain and BTC $ Gain signals the importance of a whole-of-company view of performance relative to a per-share view.
Per the shareholder, there is no agreed-upon conventional valuation methodology for Bitcoin companies. This means any metric is somewhat arbitrary.
Investors increasingly turn to digital assets as a safe haven, with Bitcoin becoming a hedge against the US dollar’s volatility as crypto inflows surge to $3.4 billion.
