Bitcoin Latest Updates: Leveraged Trading and Trump’s Policies Drive Crypto’s $455M Downturn

Recent volatility in the cryptocurrency sector has highlighted the dangers of excessive leverage, as seven major traders on HyperLiquid collectively lost more than $455 million over the past eight months. In just the last 24 hours, liquidation volumes exceeded $1.65 billion, according to a

. These significant losses, fueled by sharp market fluctuations and leveraged positions, have reignited discussions about the viability of such trading strategies. Critics have called these practices "reckless" and cautioned about potential systemic threats, as reported by .

One of the most affected traders, Machi Big Brother—a Taiwanese-American crypto influencer—saw his profits drop from $44.8 million to $15 million, with his account balance reduced to just $16,770 after partial liquidation. Likewise, James Wynn’s $87 million gain turned into a $21.9 million deficit, and Qwatio, recognized for bold short trades, lost $28.8 million after re-entering the market with 20x leverage on

, according to Cryptopolitan. These incidents underscore the vulnerability of leveraged trading in a market susceptible to abrupt shifts.

This period of instability has coincided with significant regulatory changes in the United States, where Donald

has declared the nation a "Bitcoin superpower." Speaking at the American Business Forum in Miami, Trump revealed an executive order to halt what he called the federal government’s "war on crypto," stressing the importance of countering China’s expanding role in digital assets, as outlined in a . This initiative is part of his broader plan to create a Strategic Reserve and a Digital Asset Stockpile, utilizing confiscated cryptocurrencies for long-term reserves, according to Blockonomi.

Trump’s approach has introduced further unpredictability into the already unstable crypto landscape. The U.S. Supreme Court’s recent review of his tariff measures under the International Emergency Economic Powers Act (IEEPA) has added new layers of uncertainty to trade policy, with Bitcoin hovering near $100,000 as investors anticipate possible regulatory changes, as noted in a

. Experts caution that even if tariffs are scaled back, Trump may turn to other legal avenues to sustain pressure, potentially extending market turbulence.

The ongoing tension between speculative leverage and evolving regulations highlights the crypto market’s complex dynamics. While high-leverage trades can yield substantial profits, the recent surge in liquidations—intensified by the October 11 market downturn—has exposed their risks, as detailed in the Panewslab report. Simultaneously, Trump’s pro-crypto stance, including the GENIUS Act aimed at stablecoin regulation, marks a strategic shift toward integrating digital assets into the U.S. economic framework, according to Blockonomi.

As the industry contends with these opposing forces, experts such as former FTX US President Brett Harrison warn that extreme leverage "leads people to wipe out their accounts rapidly," advocating for a greater emphasis on prudent, long-term trading strategies—a perspective highlighted in Cryptopolitan’s analysis. The months ahead will reveal whether improved regulation and effective risk management can coexist in a sector still defining its future.