HomeBitcoinCrypto Whale James Wynn’s $1.25B Bitcoin Leverage Play: Will 40x Exposure Spark...

Crypto Whale James Wynn’s $1.25B Bitcoin Leverage Play: Will 40x Exposure Spark a Liquidation Crisis?

- Advertisement -
  • James Wynn closed $25.19M PEPE long, then bet $1.25B on Bitcoin with 40x leverage; liquidation at $105,180. 
  • Wynn’s unrealized BTC loss hits -$7.56M amid volatility; past trades include $10M gains on TRUMP and PEPE.

Cryptocurrency trader James Wynn has drawn scrutiny for recent high-risk moves, closing profitable positions in memecoins to double down on Bitcoin. Known for aggressive leverage and rapid portfolio shifts, Wynn’s actions reflect a strategy blending calculated risk with opportunistic timing.

Recent Trades: PEPE Profit and Bitcoin Long Position

On May 24, 2025, Wynn exited all long positions in PEPE, securing a $25.19 million profit after a 60-day holding period, according to blockchain tracker Lookonchain. The trade capitalized on PEPE’s volatility, reinforcing his reputation for timing memecoin surges. Immediately after, Wynn allocated $1.25 billion to a leveraged Bitcoin long position, acquiring 11,588 BTC with 40x leverage.

This bet carries substantial risk. Bitcoin’s price must stay above $105,180 to avoid liquidation—a threshold narrowly above current levels. At publication, the position showed an unrealized loss of $7.56 million, with a return on equity (ROE) of -24.11%. Market observers note the trade’s precarious balance between potential gains and catastrophic losses.

Past Moves: Wins, Losses, and Leverage  

Wynn’s trading history reveals a pattern of high-conviction bets. Earlier on May 24, he closed Ethereum and SUI positions during a market dip, absorbing a $5.3 million loss. He simultaneously increased his Bitcoin exposure to 11,070 BTC ($1.19 billion), despite cumulative losses exceeding $20 million when factoring in funding fees.

Previous successes include early investments in PEPE and TRUMP tokens. In one instance, Wynn purchased PEPE tokens when its market value was $600,000, later selling as it surged to $4.2 million—a profit exceeding $10 million. Similarly, he allocated $10 million to TRUMP tokens ahead of a major announcement, securing returns as the token rallied.

Wynn’s approach mirrors hedge fund tactics, using leverage to amplify exposure while targeting undervalued or momentum-driven assets. His shifts between memecoins and Bitcoin suggest a dual focus: capturing quick gains from speculative tokens while maintaining a cornerstone position in crypto’s largest asset.

The $1.25 billion Bitcoin bet, however, raises questions. Leverage magnifies both profits and risks, and Bitcoin’s recent volatility—fluctuating between $100,000 and $110,000—leaves little margin for error. ETHNews analysts speculate whether Wynn anticipates a bullish catalyst or is hedging against broader market moves.

Wynn’s trades are closely monitored for signals about market sentiment. His exit from PEPE aligns with a memecoin cooling-off period, while the Bitcoin accumulation mirrors institutional strategies ahead of regulatory or macroeconomic shifts. The 40x leverage, however, underscores a tolerance for risk uncommon even in crypto’s volatile environment.

Bitcoin (BTC) – Price Analysis as of May 24, 2025

BTCUSDT_2025-05-24_13-32-37
Source: BTC/Tradingview

Bitcoin (BTC) is currently trading at $109,111, up +1.66% on the day, after recently hitting an all-time high of $111,999. The bullish rally is being fueled by a combination of macroeconomic tailwinds, regulatory clarity, and robust institutional accumulation.

Over the past month, BTC has gained +16.4%, and over the past year it’s up a remarkable +60.65%, reinforcing its dominant position in the crypto asset class.

BTCUSDT_2025-05-24_13-33-51
Source: BTC/Tradingview

From a technical perspective, BTC is currently consolidating just below the psychological resistance at $110,000. ETHNews analysts highlight a clean breakout above this level could trigger a run toward $115,000–$118,000.

Support lies in the $106,000–$107,000 range. Trading volume remains strong, with $55.04 billion in 24h volume, and the RSI is moderately bullish without being overextended.

Fundamentally, the rally is being supported by:

  • A record $2.75 billion inflow into Bitcoin ETFs this week, suggesting deep institutional conviction.

  • Whale activity, including a $277 million transfer to Kraken, shows continued large-scale movement — potentially for liquidity or positioning.

  • The passage of the U.S. crypto bill in the Senate, which is expected to further drive pension fund and sovereign capital into BTC markets.

Market sentiment suggests this bull phase could extend into the second half of the year, with projections ranging from $125,000 by Q3 2025, and even $150,000+ by year-end, as more governments and funds adopt a Bitcoin allocation strategy.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
RELATED ARTICLES

LATEST ARTICLES