Arthur Hayes ignites discussion on Bitcoin (BTC) “cleanse”

Arthur Hayes ignited discussion on May 24 when he tweeted about a $HYPE “cleanse.” The statement came after dramatic price increases

Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, has sparked discussion with his remarks on a “$HYPE cleanse” and a "degen bull whale," hinting at a large trader who might face liquidation, setting the stage for more volatility.

The conversation began with Hayes's tweet on May 24, where he referenced a “$HYPE cleanse” and a “degen bull whale” who might be in trouble. This follows dramatic price increases for the $HYPE token, which began on May 23 with a surge to as high as $37.24.

The token's price spike led to the liquidation of several short positions, with one position reportedly losing $23 million. Speculation arose about whether a large trader, possibly James Wynn, known for his bold and leveraged trading style on Hyperliquid, could be facing pressure to adjust his exposure due to recent market turbulence.

However, despite the significant volatility, $HYPE has maintained strong momentum, and Wynn has not liquidated his positions. This follows a period of speculation about Wynn's trades, which began after his $1.1 billion Bitcoin (BTC) position on Hyperliquid drew attention.

The trader, who uses the wallet address 0x507, entered the long position at around $109,000 per BTC using 40x leverage and an initial margin of $400,000. He then increased his stake on May 21 as Bitcoin broke past the $109,000 level.

Wynn took partial profits along the way, reducing his exposure by hundreds of millions before rebuilding it. Before turning into a loss, the trade had recorded possible profits of nearly $39 million.

His net profit is about $14 million and his liquidation level is close to $95,805. If the price falls significantly, his position could be liquidated, potentially sparking a vicious cycle of price declines and liquidations.

Read More: James Wynn’s Crypto Gamble: Will His Risky Moves Lead to a Massive Downfall?

Wynn’s trades are being closely monitored by analysts and traders, especially as his several partial sales were made before the market fell, leading some to speculate on whether his actions are contributing to short-term volatility.

However, Wynn seems unfazed and prepared for more volatility, as he usually adds more trades after a retracement. This aligns with his strategy of entering early, leveraging heavily, and exiting partially after price spikes, which he applied successfully to memecoins earlier this year.

Wynn's success in quickly growing his investments is evident in his gains from PEPE and Official Trump tokens. He reportedly turned an initial investment of $8,524 in PEPE into more than $44 million.

The post Arthur Hayes Hints at ‘$HYPE Cleanse’ and Degen Bull Whale in Latest Tweet appeared first on Coin Edition.

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