Bitcoin Market Rebounds Strongly as Over 3M BTC Exit Underwater Positions; Whale Trader James Wynn Scores Massive Gains

When Bitcoin staged a notable recovery from recent lows, on-chain data and trading activity painted a picture of renewed confidence in the market.

More than 3 million BTC transitioned from being held at a loss to now sitting in profit — a clear sign of sentiment shifting in favor of bulls. Among those capitalizing on the turnaround while we were going to press was well-known whale trader James Wynn, who has reportedly turned a high-leverage position into millions in unrealized gains in just a matter of days.

The local low in the market was about $74,000, a level that left over 5 million BTC—nearly 25% of the circulating supply—underwater. But now that Bitcoin is recovering and has settled near the $97,000 mark, the BTC held at a loss has shrunk to an amount that is around 1.9 million coins. In between these two points, we can infer that more than 3 million BTC, previously in red territory, returned to profitability.

This market shift is much larger. It is primarily fueled by a huge number of investors who had bought in at much higher levels and were mostly within the red, but now have gone positive. And I mean way positive. Our research suggests that the speed and scale of this transition from underwater to back on top is one that hasn’t been seen in years. Such momentum is the sort that usually occurs during strong uptrends or at the very early stages of a broad rally.

James Wynn’s Bold 40x Bitcoin Long Pays Off

Source material:

Amid this positive market movement, high-profile whale trader James Wynn has become a focal point of crypto trading chatter. According to data from HyperInsight, Wynn opened a massive Bitcoin long position on May 1st through the Hyperliquid exchange — a position that now appears to be paying off in a big way.

With this favorable market momentum, high-ranking whale trader James Wynn has surfaced as a center of interest in crypto trading banter. Data from HyperInsight shows that Wynn opened a large position to go long on Bitcoin on May 1, using the Hyperliquid exchange — and that position looks to be reaping rewards in a rather substantial way.

The specifics are striking: Wynn took a long position in BTC worth about $137 million at the time he entered. He did so using 40x leverage — a hair-raising amount, with mostly downside risk but some upside potential. He entered at $96,629.40, with a stop-out (euphemistically called a ‘liquidation level’) at $87,844. Not that I’d encourage it, but if someone were to construct a risky crypto trade on paper, this would be an excellent thumbnail for it.

In the days after his trade, as Bitcoin neared $100,000, Wynn’s position became much more profitable, moving way up into the green. As of now, he’s looking at an unrealized profit of more than $4 million, with that figure seemingly on a trajectory to go even higher.

Yet, Wynn’s ambitions exceeded even that. Alongside his Bitcoin wager, he declared a 10x leveraged bet on the memecoin $PEPE. This slightly mad move has apparently pulled in better than $2 million in profits already, if Wynn’s in-house, for-social-media consumption numbers are to be believed. And those numbers are believable mostly because $PEPE has been on a massive rip lately, in no small part due to some sudden enthusiasm over a rumored upcoming Pepecoin listing on Binance.

Not just the magnitude of these trades but their deeper meaning has drawn a lot of eyes to them. In a 2025 market where we have all been feeling compelled to exercise caution in the face of macroeconomic uncertainty and gnawing regulatory doubt, Wynn’s trades plowed ahead with something almost resembling cheer. They were bets, yes, but they were also big-tent calls for the symbolism of crypto and, more to the point, for crypto’s resilience.

From Underwater to Profit: What’s Next?

There has been a sharp drop in the number of bitcoins being held at a loss. This seems to indicate that a good number of holders (if not the vast majority) are finally seeing the kind of price appreciation that makes them feel like they’re not just holding on for the sake of holding on. And get this: The last time we saw a drop this dramatic, it was October 2020. Less than six months later, we hit a new all-time high.

Even so, it pays to be careful. Using high leverage, while it can be profitable when trades succeed, just as easily can lead to getting liquidated in a hurry. Wynn and his ilk are trading these strategies and taking calculated risks. For average investors, these sorts of down-and-up trades—using lots of leverage—increase volatility and therefore increase danger.

As the market takes in its recent profits and approaches what could be a pivotal quarter, all eyes are on Bitcoin and on the not-so-timid traders who are reaping and risking plenty in that digital currency.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!