James Wynn, a top crypto whale well known for his high-leverage trades, is making headlines in the crypto market yet again after making a high risk bet on Bitcoin (BTC). In his most recent trade, he made a $1.25 billion worth long bet on Bitcoin. This bet comes after he closed his previous positions in Ethereum, Sui, and PEPE. 

The move signifies a major shift from altcoins to Bitcoin. Additionally, the risk associated with his recent trade has stirred a discussion across the crypto community as Bitcoin faces a weekend correction. 

Crypto Whale Bets Long on Bitcoin with 40x Leverage

On May 24, blockchain analytic platform Lookonchain has reported a high risk long position bet made by James Wynn. As per the report, the high-leverage trader placed a long position trade with 11,588 BTC. These Bitcoins were worth $1.25 billion as at the time of the trade. 

Wynn entered the trade at the $108,915.5 price level with a 40x leverage. However, what is fascinating about the trade is that Wynn set the $105,180 price level as the liquidation level. 

This trade is part of a broader trend observed from Wynn’s trading patterns. Earlier this week, on May 21, he opened a long position worth $830 million. That position generated a $400 million profit, which he closed within the same day. 

Trader Exited Altcoin Positions to Bet Long on BTC

As part of his strategy to double down on Bitcoin, Wynn exited his positions on several altcoins. Lookonchain analysis shows that he closed his positions on ETH, SUI, and PEPE to go long on Bitcoin. 

A previous report by Lookonchain shows that he closed his long position on ETH and SUI first. However, by the time of exit on ETH and SUI positions, he had made a loss of $5.3 million on the trades.

Wynn then went long on Bitcoin pushing his position to 11,070 BTC($1.19B). For this entry, he had set his liquidation level $104,820. 

But then, he offset the loss on ETH and SUI in his latest PEPE long position. Another report by Lookonchain shows that he closed all his long positions on $PEPE for a total profit of $25.19 Million.

Wynn Backs His Long Position on Bitcoin’s Falling Wedge Formation

Wynn’s current position builds upon earlier aggressive bets on Bitcoin. A report by Lookonchain indicates that he re-entered the market as Bitcoin’s price continued to rise. He has shown confidence in Bitcoin’s performance, citing higher price targets based on the recent falling wedge formation on Bitcoin’s chart. 

“We call this a falling wedge right?” Wynn posted on X.

A falling wedge is a bullish chart formation that forms when there is a downward trend in a cryptocurrency’s price action. Usually, the chart is predicted to mean the price could break out in the near future. 

Wynn recently predicted that he is eyeing the price of Bitcoin to reach $110,500 before the end of today. He also predicted that Bitcoin will reach between $118,000 and $121,000 in the coming week.  

Trader’s BTC Long Position Lies Just 3% Away From Liquidation 

As per the data by CoinMarketCap, Bitcoin is currently trading at $108,793. The current price level is just 3% above the Wynn’s liquidation level. Additionally, Bitcoin’s trading volume has dropped on the day. It currently sits at $50.81 billion, a 22.66% drop over the last 24 hours. The drop shows that traders are refraining from trading activities amid the weekend price drop. 

While some traders follow Wynn’s strategies, it is crucial to exercise caution especially around high-leverage trading. Bitcoin is currently facing a weekend volatility. The market will keep an eye on the high leverage trade and Bitcoin’s price movement.