A trader won big over the weekend, as they opened a $200 million long position on Bitcoin (BTC) with a 50x leverage just before President Trump announced the national crypto reserve.
The move resulted in a massive profit of $6.8 million after the trader used $4 million in collateral to make the trade. The entry was at $85,908 with a liquidation price of $84,752.
After the news of the reserve hit social media, the price of Bitcoin increased by 11% from $85,000 to $97,255. Others saw substantial gains too, like ADA and XRP.
What was announced about the US Crypto Reserve and BTC?
On Sunday (March 2), the crypto community was caught off guard as the president announced news of the reserve through his social media platform Truth Social.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA.
“I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!” During his campaign run, Trump regularly promised to make the US the crypto capital.
The first announcement, however, seemingly forgot to include Bitcoin within the mix, but just two hours later the president added to his original statement.
“And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”
It was after that the prices of the coins listed saw a boost in the markets. This comes after Trump ran with a pro-crypto stance throughout his campaign which saw him signing an executive order to create a specialist working group focused on the industry and to develop digital asset regulation shortly after taking office in January.
A number of appointments have been made since then, with the latest being ‘crypto cheerleader’ Howard Lutnick who was confirmed as the commerce secretary on February 19.
Featured Image: AI-generated via Ideogram
