James Wynn takes another risk with a 40x leverage Short order on Bitcoin.

James Wynn, a prominent trader in the crypto space, has drawn attention by returning to a high-leverage trading strategy, opening a short position on Bitcoin worth $1.49 million with a leverage ratio of up to 40x. This move by Wynn comes amid a rising to the sky trend in the crypto market, prompting many in the industry to question the riskiness and accuracy of this decision.

1. Risky Short Strategy

Wynn has opened a short position on Bitcoin with a margin of up to 40x, equivalent to 13.9 BTC worth $1.49 million, on the Hyperliquid trading platform. Notably, this trade has an extremely tight liquidation point, set at just $108,630. This means that if the price of Bitcoin continues to rise as it currently is, Wynn risks being liquidated in a matter of seconds. Although Bitcoin has recorded impressive growth over long time frames, with a rise of 5.8% in 7 days, 2.6% in 30 days, and 77.7% in 1 year, Wynn still decided to bet on the bearish potential of this coin.

Despite facing the risk of liquidation almost immediately if the price of Bitcoin continues to rise, James Wynn remains confident in his strategy. While making the Short decision, he shares conflicting thoughts through his tweets, being both confident and warning about the risks of these trades. With a leverage ratio of 40x, the level of risk amplification becomes very large, especially when the crypto market tends to be highly volatile. Wynn has prepared a plan to inject an additional 75 million USD into the Hyperliquid platform if it allows increasing the leverage to 50 times, which further demonstrates his determination to take advantage of trading leverage.

James Wynn's position on Hyperliquid## Long-term strategy and Bitcoin accumulation mindset

Although he is engaging in shorting Bitcoin in the short term, James Wynn still maintains his belief in the long-term value of Bitcoin. He believes that Bitcoin will continue to be the largest store of value asset ever created, and retail investors should adopt a strategy of accumulation rather than trying to make quick profits. With a limited supply of only 21 million Bitcoins, Wynn encourages investors to buy Bitcoin in a gradually increasing manner, through small transactions instead of looking for big opportunities.

In addition to trading strategies, Wynn also shared insights on the changing trends in crypto investment. He pointed out that the meme coin culture is becoming less healthy than before, with many new projects emerging like "fartcoin." However, while these cryptocurrencies draw attention from many short-term investors, Wynn still maintains the view that Bitcoin is a safer and more sustainable choice. He remarked that holding Bitcoin in the long term will be a smart strategy, as in the future, purchasing Bitcoin will become more difficult due to limited supply.

Wynn recommends that retail investors adopt an accumulation strategy instead of trying to profit from short-term price spikes. He believes that accumulating Bitcoin in small steps will help them build a stable investment portfolio in the long term, especially when the scarcity of Bitcoin will cause its value to rise over time. Wynn also emphasizes that over a period of five to ten years, Bitcoin will continue to be a valuable asset with the potential for outstanding growth.

Emma