Bankrupt traders turn around, giant whales increase their positions together, and market risk appetite suddenly rises.

On the evening of January 6th, the on-chain whale rebalancing movements sent a clear signal: bulls are increasing their positions, while bears are under pressure. According to the latest monitoring, from 10:00 to 20:00, several well-known whales have been adjusting their holdings, reflecting a significant rise in market risk appetite—especially the turnaround of trader James Wynn, who was once “bankrupt,” now becoming a key trigger for sentiment transmission.

The Bull-Bear Divergence Behind Whale Movements

On-chain data shows that today’s whale rebalancing exhibits obvious bullish-bearish divergence:

Continuous Bull Accumulation

The “Lightning Reversal” whale continues to add to long positions in BTC and ETH, with total holdings reaching $167 million. Although currently showing an unrealized loss of $680, this contrarian accumulation indicates a strong attitude—buying in unfavorable prices generally signals confidence in the market’s future direction.

More noteworthy is James Wynn’s movement. This “bankrupt trader,” who previously lost over $100 million on the Hyperliquid platform, recently achieved a remarkable turnaround through roll-over strategies. According to reports, he started going long on PEPE with $10,000 at the beginning of January, and his account has now grown to $910,000, a 90-fold increase. Building on this, he has increased his long positions in BTC and PEPE, with an unrealized profit of $820,000.

Bearish Passive Pressure

In contrast, the bear camp is under pressure. The whale who sold 255 BTC continues to add to short positions totaling $225.8 million but is now showing an unrealized loss of over $6 million. This behavior of increasing positions while in loss is more of a passive “averaging down to stop loss”—attempting to lower the average cost to ease losses, rather than genuinely bearish on the market’s outlook.

Market Significance of the James Wynn Phenomenon

James Wynn’s turnaround story has attracted widespread attention in the crypto community. It’s not just a personal trading legend but also a reflection of changing market sentiment.

From “Bankruptcy” to “Turnaround” — The Lesson

Six months ago, a $100 million loss made James Wynn a cautionary tale in the crypto space. But he didn’t exit the market; instead, he continued small roll-over trades using commission income. When PEPE started its rally on January 1, his small position, leveraged heavily and rolled over, experienced exponential growth. Although this process looks like “walking on a knife’s edge,” it also highlights the potential for small funds to double through extreme leverage during MEME coin seasons.

Sentiment Transmission Effect

More critically, Wynn’s actions have triggered a clear sentiment transmission in the market. By increasing positions in both BTC and PEPE, he demonstrates confidence in a bull market environment and attempts to amplify gains through a “mainstream coins stable + MEME coins for flexibility” strategy. This operational logic is being imitated by other traders, boosting the popularity of MEME coins like PEPE.

According to reports, PEPE has risen 66.44% over the past 7 days and 51.33% over the past 30 days, with a market cap reaching $287 million. Behind this surge are both fundamental support and the emotional influence of opinion leaders like James Wynn.

Hidden Risks Behind Elevated Risk Appetite

Whale accumulation and the explosive rise of MEME coins indeed reflect an increased market risk appetite, but this also comes with significant risks.

Fragility of High Leverage

James Wynn’s current BTC long position is leveraged 40x, with an average entry price of $91,854, and a liquidation price of only $89,600. This means BTC only needs to decline about 2% to trigger liquidation. As for PEPE, a high-volatility MEME coin, its 10x leveraged longs carry risks that are even harder to estimate.

Possibility of Reversal in Risk Appetite

When market risk appetite rises to this level, it often marks the most vulnerable point. Any negative news or price fluctuations could trigger chain reactions of liquidations, leading to a sharp reversal in risk sentiment.

Summary

The rebalancing movements of on-chain whales and James Wynn’s turnaround story point to the same conclusion: market risk appetite is indeed rising, and the MEME coin season may be beginning. However, behind this rise are extremely high leverage and fragile psychological expectations. For ordinary investors, monitoring whale movements helps understand market sentiment but should not be blindly followed. High leverage operations have limited reference value—once mistakes happen, the costs are enormous. An elevated risk appetite presents opportunities but also requires sober awareness that such opportunities often come with equally large risks.