A crypto whale’s $6.8 Million profit from leveraged Bitcoin (BTC) and Ethereum (ETH) trades has fueled insider trading speculation in crypto news headlines today.
The timing coincides with the U.S. President Donald Trump’s March 2, 2025, announcement of a U.S. Crypto Reserve, raising concerns about potential market manipulation.
The whale used $4 Million to create a $200 Million position, going 50x long on BTC and ETH, and closed most trades within a day, aligning perfectly with Trump’s Truth Social post at approximately 8:05 PST, which named BTC, ETH, XRP, SOL, and ADA for the reserve.
This timing has raised eyebrows, especially given the high risk involved, but research suggests it may be a coincidence rather than insider trading, given the lack of evidence.
Crypto News: High Leverage, High Stakes
The whale’s trades were executed with significant leverage, using $4 Million to open a $200 Million position, implying an overall 50x leverage.
The specific entry points were $85,908 for BTC and $2,197 for ETH, with liquidation prices at $84,752 for BTC and $2,149.4 for ETH, according to market data reported by Kobeissi Letter.
This means a tiny price dip—1.346% for BTC and 2.17% for ETH—would have triggered liquidation, wiping out his position.
Despite this risk, the whale closed most trades, raking in over $6.8 Million in profit, calculated as a 3.4% increase in the position value, amplified by leverage to yield a 170% return on his initial margin.
This high-stakes bet, where a small market dip could have erased $4 Million, highlights the volatility and precision needed, adding context to the debate.
However, in a recent update it was highlighted that the guy actually got his funds from phishing and is a roobet whale. He also closed his longs before the Trump second announcement missing out on millions.
Turns out he’s just a gambler with stolen funds and not someone with inside information as highlighted by analyst.
Trump’s Crypto Reserve Announcement: Catalyst for Price Surge
Trump’s announcement, made via Truth Social, confirmed a U.S. Crypto Reserve including BTC and ETH, among others, at around 8:05 PST on March 2, 2025, as reported by The Coin Republic.
This major crypto news triggered a market rally, with BTC up 11% to $94,164 and ETH up 13% to $2,516, per market data.
The whale’s timing, aligning with this post, suggests he may have reacted to the public announcement, given the crypto market’s fast response to news. The market added $329 Billion in market cap in three hours, per Axios, underscoring the surge’s scale.
The allegation of insider trading hinges on whether the whale had prior knowledge of Trump’s post. However, there’s no concrete evidence he accessed nonpublic information.
The high risk, with liquidation points close to entry prices, suggests a bet on anticipated news, not guaranteed knowledge, leaning toward coincidence rather than insider trading.
Such trades are common among large players, betting on regulatory news, but without evidence of prior knowledge, it’s hard to label this insider trading.
Market Reaction and Volatility
The crypto market’s volatility, especially post-announcement, underscores whale behavior. BTC and ETH prices surged, benefiting the whale’s position, but a dip could have ended it.
The whale’s near-liquidation risk, with BTC at $85,908 and ETH at $2,197, just above liquidation points of $84,752 and $2,149.4, shows the volatility and precision needed, adding context to the debate.
The timing, while suspicious, fits crypto’s fast-moving nature, where traders react to major crypto news instantly.
Source: https://www.thecoinrepublic.com/2025/03/03/crypto-news-crypto-whales-6-8-million-gains-fuel-insider-trading-buzz-but-heres-the-truth/