#Strategy加仓BTC 【40x leverage makes a comeback—Is this really confidence?】

Recently, a suspicious on-chain activity was detected—

A certain whale injected $1.07 million USDC into a DEX platform, then immediately opened a 40x BTC long position, causing the nominal holdings to instantly swell to $31.61 million. This whale also opened a 5x long position on ZRO, currently with an unrealized profit of about $125,000.

Sounds impressive? Don’t rush to follow just yet.

Here’s the key info—the account has a total trading loss of $21.4 million.

What does that mean? This isn’t "smart money confirming a trend," but more like playing a high-stakes game to recover losses.

A 40x leverage, in simple terms, means betting on short-term fluctuations with a very narrow margin of error. When making profits, it amplifies gains, but a normal retracement candle can lead to liquidation in minutes. Large, long-term funds rarely play with such high leverage. Who typically does this? Accounts that are either driven by market desperation or are risking everything to turn things around.

So, this information should be viewed more as a "risk thermometer," not a trading signal. When such extreme leverage operations become frequent in the market, it often indicates that volatility is being pushed to new heights.

In one sentence: The more aggressive the leverage, the crazier the market.

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