James Wynn, who is famous for taking big risks, has now changed his strategy for Bitcoin. Within hours of closing a large $1.2 billion long position, Wynn took a $1 billion short position on Bitcoin. Unfortunately, his big bet against Bitcoin’s rise led to a loss of $27 million.
Wynn first created a $111.8 million short position on 1,038 BTC using 40X leverage and set the liquidation price at $149,100. Amid his optimism, Bitcoin held firm, trading at around $107,000 and down 4.5% from its highest point.
Wynn raised his short to $1 billion, with each BTC valued at $9,402, hoping for a quick drop in the price. People in the industry were closely monitoring Wynn, as some predicted a squeeze that could force him to exit the market.
Within a day, Wynn closed all his short positions, resulting in a total loss of $15 million. This added to his losses from the previous day, which amounted to almost $13 million, bringing his total losses over 24 hours to nearly $28 million.
Wynn believes the market will fall because of weak trading volume, a chart that is undersold, and a low 50-day moving average. In addition, recent economic worries, such as the new 50% tariff Trump announced, have put more pressure on Bitcoin prices.
Adding more fuel to the fire, Wynn also went long on $PEPE with 10x leverage, earning an unrealized profit of $130K, according to Lookonchain.
Even though Wynn’s short bet didn’t work out, it shows that the crypto market is highly volatile, especially when big traders place big bets.
Also Read: Billion-Dollar Bitcoin Long Trader is Now Bearish: Opens $111M Short
