A prominent Bitcoin whale, known for accurately predicting market downturns, has opened a $235 million short position on BTC, signaling a potential bearish outlook amid ongoing economic uncertainties. This move comes shortly after the same whale reportedly pocketed around $200 million by shorting Bitcoin just before the significant crypto market crash last week.
The whale's activity has drawn considerable attention, especially since the previous market crash was triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports. The timing of the whale's prior short position, placed just minutes before the tariff announcement, has fueled speculation about possible insider trading. Blockchain data platform Arkham Intelligence has even tagged the Hyperliquid whale as a "Trump insider whale". However, no direct evidence has surfaced to confirm any connection between the whale and sources within the Trump administration.
According to Hypurrscan blockchain data, the investor initiated the new short position on Monday when Bitcoin was trading around $111,190. Currently, the whale faces an unrealized loss of approximately $2.6 million on this bet, and the position would be liquidated if Bitcoin's price exceeds $112,368. The whale is utilizing a 10-times leveraged short position, amplifying both potential gains and potential losses. Leverage allows traders to control a larger position than their holdings would normally allow, but it also increases the risk of significant losses.
This particular Bitcoin whale, estimated to hold $11 billion in Bitcoin, has been active in the crypto space for several months. Two months ago, the whale shifted around $5 billion worth of BTC into Ether (ETH), briefly holding more ETH than Sharplink, a major corporate treasury company. Data also indicates that the whale transferred $540 million worth of Bitcoin to new wallets over the past week, including $220 million to Coinbase exchange wallets.
The recent market crash liquidated over $19.1 billion in leveraged crypto positions within 24 hours, with long positions taking the brunt of the impact. Bitcoin plummeted from a peak above $125,000 to below $102,000 before stabilizing around $111,500. Ethereum also experienced a sharp decline, falling from $4,300 to $3,373. Analysts attributed the crash to excessive leverage and macroeconomic uncertainty, with cascading liquidations exacerbating the price declines.
The whale's new short position suggests a continued bearish sentiment, despite the recent market rebound. Some analysts believe that large-scale selling from previously dormant Bitcoin whales has been a factor limiting Bitcoin's price increases. The market remains sensitive to geopolitical events and economic announcements, and the high levels of leverage present in the crypto space amplify both gains and losses.
