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An investor’s highly leveraged long trade and closure just before President Donald Trump declared a cryptocurrency strategic reserve on Sunday raised speculation of insider trading.
What happened: In an X post, capital markets commentator The Kobeissi Letter highlighted how a whale took a 50x leverage on Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) to turn an investment of $4 million into a $200 million position.
“$200 million of longs (including leverage) is no joke, especially in a market where Bitcoin was down 25%,” The Kobeissi Letter said.
The risky move meant that a mere 2% drop in Bitcoin could have liquidated the trader.
Additional data from on-chain tracker Spot …
