A cryptocurrency trader reportedly earned over $1.6 million in profits by taking a highly leveraged 50x long position on Bitcoin (BTC) and Ethereum (ETH) before President Donald Trump’s announcement of a proposed U.S. crypto strategic reserve on March 2, 2025.
Policy Shift Triggers Market Surge
Trump’s announcement, made via the social media platform Truth Social, revealed plans to include BTC, ETH, XRP, Solana (SOL), and Cardano (ADA) in a national crypto reserve aimed at positioning the United States as the “Crypto Capital of the World.” The far-reaching statement immediately sent markets soaring: Bitcoin rose to the $95,000 range, while other assets gained as much as 75%.
Precise Positioning and Extreme Leverage
According to multiple reports, an unidentified whale deposited USDC into the leveraged trading platform Hyperliquid before the announcement. The trader opened positions with entry prices of $85,908 for BTC and $2,197 for ETH, leveraging 50x to control a notional value of approximately $300 million. By early March 2, BTC and ETH prices had climbed massively, yielding profits exceeding $1.6 million.
Hidden Risks of High Leverage
The positions carried liquidation prices of $84,752 for BTC and $2,149.40 for ETH, indicating that a mere 2% decline in either asset could have erased the entire position. Analysts noted the whale’s timing aligned almost perfectly with the announcement’s release, suggesting either anticipation of the policy or a rapid reaction to early market movements. While 50x leverage amplifies gains, it also magnifies losses proportionally — a strategy common in the volatile crypto space, where traders capitalize on short-term price swings driven by macroeconomic or regulatory news.
This high-stakes trade once again demonstrates the double-edged nature of leveraged trading: the same instrument that can generate million-dollar profits in hours can also lead to complete liquidation in minutes. Market participants are advised to remain cautious of liquidity risks during extreme volatility events.