Traders at Hyperliquid, a decentralized, permanent swap platform, have leveraged a $5.6 million deposit to open 50 times longer positions in Bitcoin and Ethereum ahead of President Donald Trump’s highly anticipated announcement on crypto strategic reserves. The move has brought the total position to over $200 million, attracting the attention of blockchain analysts. Hours before the announcement, Ethereum prices fell where traders’ positions were at risk of liquidation, with ETH having to lower another $54 to cause losses of over $2 million.
However, Trump’s Crypto Reserve announcement came at UTC on Sunday at 3pm, causing prices for Bitcoin and Ethereum to surge, causing traders to close positions within 24 hours and pocket $7 million in profits. Traders who had been adding to their jobs throughout the morning missed the opportunity to make more profit when Trump revealed that Bitcoin and Ethereum were included in the crypto sanctuary, and that prices would rise further.
Bitcoin rose by around 9% 24 hours after its announcement, with Cardano, another token mentioned by Trump, surprised by 58%, surpassing both Bitcoin and Ethereum. If the traders had held their position up to this clarification, they would have made even greater profits.
The use of leverage amplified traders’ exposure, but placed them on the edge of liquidation, highlighting the high-risk, high-reward nature of such trading strategies.