A significant move in the cryptocurrency market has caught the attention of traders and analysts alike: a large Bitcoin whale has opened a new short position worth $235 million. This move signals that substantial investors are bracing for further turbulence in the crypto landscape. The trader, known for previously capitalizing on Bitcoin’s volatility, made headlines recently after securing around $200 million from Bitcoin’s dip to $100,000. Now, it seems he is betting once again on more downward movement.
The short position was established when Bitcoin was trading at approximately $111,190, as reported by blockchain tracking platform Hypurrscan. The position utilizes 10x leverage, meaning the stakes are significantly amplified. At this point, the trader is facing an unrealized loss of about $2.6 million, with liquidation risks looming if Bitcoin climbs beyond $112,368.
Whale Moves Millions as Bitcoin Price Struggles
Adding to the intrigue, data from Arkham reveals that this whale transferred an astonishing $540 million worth of Bitcoin (BTC) to various new wallets. Among these movements, $220 million was sent to Coinbase, while $30 million landed in Hyperliquid, the very platform where the whale opened the new short position.
Blockchain transactions indicate that this investor previously rotated around $5 billion of Bitcoin into Ether (ETH), momentarily positioning themselves as one of the largest individual holders of Ether, surpassing even the corporate treasury of Sharplink. This kind of strategic maneuvering showcases the whale’s keen market acumen.
Analyst Willy Woo mentioned in August that significant selling activity from dormant whales had impacted Bitcoin’s overall performance. Now, the trend seems to extend to newer large holders, who are feeling the pinch as CryptoQuant estimates a collective unrealized loss of $6.95 billion for this group. This downturn follows Bitcoin’s slip below the average cost basis of $113,000, leading many to reconsider their positions.
Despite the losses, some analysts view the recent dip to $104,000 as a necessary reset after months of leveraged speculation. According to Glassnode, short-term holders are beginning to capture more market share, indicating a potential shift back to speculative trading.
‘Trump Insider’ Bitcoin Whale Expands Short Position
Another notable player in the market, nicknamed the “Trump insider,” has also increased his bearish position. Onchain data from Hyperbot indicates that this trader has raised his short position to 2,100 BTC, roughly equivalent to $227 million as Bitcoin hovered around $108,000. Currently, this position is showing a floating profit of about $5.8 million, though these gains won’t be realized until he chooses to close the trade.
Throughout the recent market downturn, the “Trump insider” has been notably active. He has transferred significant amounts of Bitcoin to both Binance and Hyperliquid to expand his exposure. Once reaching a total short exposure of 3,440 BTC, valued at $392 million, market speculation suggests he is anticipating Bitcoin to either retest the $100,000 mark or even fall below it.
This particular wallet gained notoriety after reportedly earning $160 million by shorting Bitcoin just before former U.S. President Donald Trump announced substantial tariffs on Chinese goods—an announcement that prompted a worldwide sell-off in both equities and digital assets. This history has solidified the whale’s reputation for timing trades to perfection.
Blockchain records link this address to an early “Bitcoin OG” cluster that has been active since 2010. Historical data even reveal that this holder accumulated over 86,000 BTC during the network’s nascent years, making him one of the oldest surviving investors in the space.
Market Jitters Rise as Whales Stay Bearish
The increase in aggressive shorting from these Bitcoin whales has sent ripples of concern through the market, suggesting further price declines may be on the horizon. Following the Bitcoin price crash on October 10–11, which saw a drop from above $125,000 to around $102,000, many leveraged traders were forced into liquidation.
As reported by CryptoQuant, whales are currently “underwater,” feeling the pressure of the recent volatility. This sudden decline wiped away nearly $19 billion in open interest across major exchanges, with Ethereum also experiencing a significant plummet of around 18% to $3,370, driven by traders fleeing from riskier assets.
While some analysts assert that this correction is healthy, the bearish positions established by these major wallets indicate a lack of confidence in any immediate recovery. Additionally, funding rates on major exchanges have turned negative, suggesting that traders are now paying to maintain their short positions. The rising volatility is further evidencing uncertainty regarding Bitcoin’s ability to maintain its current price range.
