Bitcoin briefly touched $95,000 before settling near $92,700 on Monday (March 3) as markets digested news of an impending White House cryptocurrency summit. President Trump's pre-summit hints about a potential U.S. Bitcoin Strategic Reserve sparked market turbulence, with allegations of insider trading emerging after a Hyperliquid whale liquidated 50x leveraged positions on Bitcoin and Ethereum, netting $6.83 million in 24 hours.
The Whale's Record Trade
Blockchain analyst Ai Yi revealed:
"The show's over, friends. We witnessed an incredible spectacle late Sunday night (Beijing Time). The Hyperliquid whale holding 88,510 ETH and 831.57 BTC positions at 50x leverage has nearly cleared all holdings (only 30.92 BTC remaining), profiting $6.83 million within 24 hours – absolute madness! Congratulations to those who rode the wave."
The whale subsequently withdrew $12.85 million USDC (including principal and profits) back to Arbitrum network, suggesting temporary inactivity according to wallet activity.
Identity and Controversy
The wallet address (0xe4d31c2541A9cE596419879B1A46Ffc7cD202c62) drew scrutiny when Coinbase executive Conor traced its funds to:
- Phishing scheme origins
- High-stakes gambling on Roobet platform
This debunked initial theories about White House insider knowledge, confirming the trader as:
👉 A opportunistic gambler using stolen funds rather than an information-connected player.
Fox Business contributor Jason A. Williams had earlier warned:
"Someone went 50x long on $200 million in BTC/ETH – either a wealthy degenerate or a market mover preparing significant spot pressure. This looks like confirmation of March 7's Bitcoin Strategic Reserve rumors. A 2% BTC drop would erase the entire position."
Frequently Asked Questions
How did the trader time the market so precisely?
The liquidation coincided with Trump's strategic reserve comments, but forensic analysis shows the wallet had lost millions gambling previously – suggesting luck rather than insider advantage.
What's the significance of 50x leverage?
Such extreme leverage amplifies both gains and risks. At 50x, a 2% adverse price movement triggers total position liquidation.
Could this affect Bitcoin's institutional adoption?
While dramatic, isolated incidents don't reflect broader institutional protocols. However, regulators may scrutinize leverage limits on crypto derivatives platforms.
Market Implications
The episode highlights:
- Volatility risks in highly leveraged crypto positions
- Transparency challenges in tracing blockchain fund origins
- Regulatory attention to derivative platforms offering extreme leverage
Despite sensational profits, the trader's phishing-linked funds raise ethical and legal questions about crypto's wild west reputation. As institutions enter, such incidents may accelerate calls for:
- Stricter KYC protocols
- Leverage caps
- Blockchain forensic oversight
👉 Learn how institutions manage crypto risk beyond speculative trading.