Bitcoin breaks through the $93,000 psychological barrier, legendary trader James Wynn uses 40x leverage to go long on BTC

When Bitcoin’s price突破93,000 USD at the beginning of 2026, the market welcomes a heavyweight “bull flag bearer.” Veteran crypto trader James Wynn publicly disclosed that he has established a Bitcoin long position with up to 40x leverage, holding 124.18 BTC, worth approximately $11.5 million.

This aggressive move coincides with a significant shift in market sentiment: the Cryptocurrency Fear & Greed Index has returned to “Neutral” for the first time since October 2025, and spot ETF funds for Bitcoin are experiencing net inflows again. This not only represents a high-risk bet but is also seen as strong support for the market narrative of “Bitcoin’s four-year cycle ending, new bull market beginning,” sparking widespread discussion on whether the market has entered a new phase.

Signal Interpretation: The “Heavy Bet” of a Legendary Trader and Market Critical Point

Market direction shifts are often first revealed by the actions of the most敏锐资金. In January 2026, after Bitcoin successfully突破93,000 USD resistance, renowned trader James Wynn revealed his hand via social media: he is re-entering large-scale leveraged Bitcoin long positions. This is not an ordinary build-up signal; the details reveal extreme optimism and risk appetite for the future.

Wynn’s position size is remarkable. He holds 124.18 BTC with up to 40x leverage, with a nominal value of about $11.5 million, and an average entry cost around $91,332. After突破93,000 USD, this position has quickly generated over $210,000 in floating profit. Interestingly, his布局 adopts a “core + satellite” strategy: while heavily invested in Bitcoin, he also holds over 364 million Pepe (PEPE) tokens with 10x leverage, valued at about $2.6 million, with accumulated profits of $590,000. This combination clearly indicates he expects not only Bitcoin’s independent movement but a comprehensive bull market sweeping mainstream and high-risk altcoins.

James Wynn Key Positions and Market Data Overview

Bitcoin Long Position Details:

Position size: 124.18 BTC

Leverage used: 40x

Average entry price: approx $91,332

Total position value: approx $11,500,000

Current floating profit: > $211,000

Pepe (PEPE) Long Position Details:

Position size: > 364,000,000 tokens

Leverage used: 10x

Total position value: approx $2,600,000

Current floating profit: > $590,000

Key Market Indicators:

Bitcoin price:突破93,000 USD

Fear & Greed Index: back to “Neutral” (first time since October 2025)

Total crypto market cap: $3.16 trillion

Weekly net inflow into Bitcoin spot ETF: approx $459 million (SoSoValue data)

The timing of this trader’s move is exquisite. $93,000 is not only a key psychological level but also a technical resistance that previously suppressed price advances. In classic technical analysis, a volume突破 of such a critical level is often interpreted as a shift in trend balance, confirming a new trend (especially an uptrend). Wynn’s rapid establishment of high-leverage positions after突破 demonstrates a typical “breakout chase” strategy, showing strong confidence in trend continuation. His actions, like a stone cast into a lake, have attracted widespread attention and follow-up discussion among traders, becoming a micro-factor influencing market sentiment.

Environment Validation: Multiple Indicators Confirm Market Sentiment “Ice Point” Rewarming

Any single trader’s behavior, no matter how renowned, may be coincidental. However, when individual bets resonate with a series of market breadth indicators, the signal’s significance is greatly enhanced. The current market environment provides a solid macro backdrop for Wynn’s aggressive long strategy.

The most直观的 sentiment indicator—the Cryptocurrency Fear & Greed Index—has undergone a key shift. In early January 2026, it finally exited the “Fear” zone and returned to “Neutral.” This is the first such move since the market experienced a sharp sell-off in October 2025. The index combines volatility, trading volume, social media activity, surveys, and market share data. Its departure from extreme pessimism is often seen as a sign that market psychology has begun initial recovery, entering a wait-and-see or tentative optimism phase. It is the first thermometer indicating the market sentiment has shifted from cold to mild.

Institutional fund flows also provide strong evidence. The Coinbase Premium Gap turned positive and remained so after last year’s deep negative values (reflecting US institutional selling or year-end outflows). This indicator measures the price difference of Bitcoin on the US-regulated Coinbase exchange versus the global average. A sustained positive premium usually indicates that buy-side forces in the US (especially institutions and high-net-worth clients) are regaining dominance, a very positive signal showing professional funds are flowing back into the market.

Fund flow data from products further confirms institutional interest. According to SoSoValue, Bitcoin spot ETF net inflows from late 2025 to early 2026 totaled about $459 million, with the BlackRock IBIT fund alone contributing over $320 million. As a bridge connecting traditional finance and crypto assets, the resumption of net ETF inflows indicates that, despite geopolitical uncertainties (such as the Venezuela situation mentioned in news), Bitcoin’s asset allocation value remains recognized by institutional investors. This steady, somewhat asynchronous “drip” buying forms an important foundation for a bull market.

Cycle Narrative: End of Old Cycle or Beginning of a New Era?

The collective shift in market sentiment raises a deeper question: Are we witnessing the natural end of the previous four-year Bitcoin cycle, or the start of a new, potentially more sustained growth era? The debate around “cycle theory” has never been more relevant.

An increasingly influential view suggests that Bitcoin’s market behavior is undergoing a fundamental evolution. As market size grows, institutional participation deepens, and new financial products like spot ETFs emerge, Bitcoin’s price model is increasingly approaching a “power-law growth” trajectory, with peak-to-peak volatility seemingly shortening. From this perspective, Bitcoin is not in the “end phase” of a four-year cycle but may be in an earlier stage of a longer, more gradual super-growth cycle. Some analysts, based on this model, estimate Bitcoin’s long-term fair value well above current levels, even setting a bold target of $218,000 by late 2026. This narrative provides seemingly solid “value discovery” logic for the current rally.

Supporting the “new cycle” theory is also the profound change in market structure. The introduction of spot ETFs creates a different, ongoing demand source from previous cycles. This demand is partly independent of retail speculation and more linked to macro themes like asset allocation and inflation hedging. It may be weakening the pulse-driven bull characteristics driven by “halving” events, shifting toward a more gradual but potentially more durable growth pattern. Additionally, potential shifts in monetary policy by major economies (from tightening to easing) could provide more liquidity for all risk assets, including crypto.

However, cautious voices have never disappeared. Opponents point out that high leverage long positions (like 40x) are classic warning signs of market top, prone to rapid deleveraging and cascading liquidations, leading to “longs killing longs” crashes. Moreover, global macroeconomic and geopolitical uncertainties remain a Damocles sword over all risk assets. They argue that it is premature to declare a new long-term bull market; what we are seeing now may only be a strong rebound amid complex market conditions.

Risk Perspective: The Temptation and Traps of High Leverage

In the passionate market narrative, maintaining a calm risk awareness is crucial. Wynn’s 40x leverage operation not only provides an extreme market sentiment sample but also serves as a warning light, illuminating the dangers lurking in leveraged trading.

First, leverage must be understood as a double-edged sword. Its core function is to amplify capital efficiency but also to proportionally increase gains and losses. For example, 40x leverage means a trader only needs to provide 2.5% margin to control 100% of the position’s nominal value. Conversely, a price move against the position of just about 2.5% could trigger a forced liquidation, wiping out the margin. In a market like Bitcoin, where daily volatility often exceeds 5%, 40x leverage is akin to dancing on a knife’s edge, requiring extremely precise entry timing and strict risk controls—far beyond the reach of ordinary investors.

Second, the “self-fulfilling” and “rapid reversal” nature of market sentiment can bring deadly risks. When influential traders publicly disclose high-leverage long positions, it may attract follow-on buying in the short term, pushing prices higher and creating a “self-fulfilling” rally. But such upward moves driven by leverage and sentiment are often fragile. Once adverse news or technical pullbacks occur, high-leverage longs at the top face pressure, forced to liquidate, which can further depress prices and trigger more liquidations—a negative feedback loop known as a “liquidity cascade.” Although volatility has temporarily decreased in January 2026, it remains far from gone.

Therefore, for ordinary market participants, observing legendary traders’ moves is a way to gauge market sentiment but should not be taken as direct investment advice. Their strategies often involve complex hedging, strict stop-loss discipline, and access to market information beyond most people’s reach. A more rational approach is to view sentiment indicators turning positive (like the Fear & Greed Index returning to neutral) as a signal to cautiously be optimistic, gradually increase spot positions, or use very low leverage (e.g., 2-5x) for testing. Surviving is more important than making quick profits in early cycle stages.

Strategic Thinking: How Should Ordinary Investors Respond to the Changing Landscape?

In the face of legendary traders’ bold moves and subtle shifts in market sentiment, how can ordinary investors position themselves to seize potential trend opportunities while managing risks effectively? The following layered considerations may offer some frameworks.

First layer: Core asset allocation (defense and foundation). Regardless of outlook, Bitcoin and Ethereum, as the “core assets” of the crypto market, should form the basis of personal portfolios. During sentiment recovery, consider dollar-cost averaging or phased buying to gradually build or increase spot holdings. The goal here is to capture overall market Beta returns, not to chase excess profits, so avoid leverage and hold for the long term.

Second layer: Participating in trend opportunities (offense and selection). If one believes in the market sentiment shift and “new cycle” narrative, focus on two directions. One is sectors benefiting from increased activity and risk appetite, such as leading exchange tokens, major Layer 1 protocols (like SOL, ETH), and asset management protocols. The other is high-risk beta opportunities implied by Wynn’s actions, such as certain Meme coins or emerging narrative sectors. Participation in these must be clearly risk-limited (e.g., not exceeding 10-20% of total investment) and with well-defined risk management plans.

Third layer: Risk management and mindset adjustment (survival and persistence). This is the most critical. Set clear stop-loss rules for both spot and leveraged positions. Be alert to rapid pullbacks amid optimistic sentiment, avoiding chasing highs out of FOMO. Understand that traders like Wynn are “phenomena,” not “guides”; their success is backed by countless failures, risk management, and experience. For most, mimicking their leverage levels is akin to self-harm.

In summary, a legendary trader’s heavy bet is like a stone cast into a calm lake, stirring ripples that reshape market expectations. It reflects the power struggle of market forces and offers a vivid case for observing cycle turning points. In the uncertain crypto world, true wisdom may lie in: listening keenly to the signals from market leaders while maintaining sober awareness of one’s risk capacity, crafting and sticking to one’s own navigation plan. The curtain of 2026 has risen—whether the story continues the old chapter or writes a new one depends on each investor’s every decision.