The $11 billion Bitcoin whale is back with another massive short position, signaling that some large investors are hedging against more crypto market declines amid tariff concerns and the current government shutdown.
THE Bitcoin Whalewhich is crypto slang for a large investor, grossed 10 times $235 million. leveraged short position on Bitcoin (BTC), which is de facto a bet on the fall in the price of the world’s first cryptocurrency.
The large investor opened the short position on Monday, when Bitcoin was trading at $111,190. It currently faces an unrealized loss of $2.6 million on the short bet, which is expected to be liquidated if the price of Bitcoin rises above $112,368, according to the Hypurrscan blockchain. data.
The new short bet comes a week after the same whale made around $200 million in profits from the crypto market crashwith a similarly leveraged short position.
In commerce, leverage refers to a strategy that allows investors to open a position larger than their holdings by “borrowing” capital. Although leveraged trading can amplify potential gains, it amplifies downside risks and may result in the loss of the entire investment.
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“The whale that made $200 million by reducing Bitcoin’s crash to $100,000 has now moved $30 million to Hyperliquid and is shorting AGAIN,” wrote blockchain data platform Arkham, in a Monday X. job.
The whale also moved $540 million worth of Bitcoin to new wallets, including $220 million to wallets on the Coinbase exchange over the past week.
THE Bitcoin whale at $11 billion appeared two months ago and turned around 5 billion dollars value of BTC to Ether (ETH), briefly overtaking the second largest business group treasury company, Sharplinkin terms of total ETH holdings, Cointelegraph reported on September 1.
Large-scale sales before Dormant Bitcoin Whales was one of the main factors limiting Bitcoin’s price action in August, according to analyst and early Bitcoin adopter Willy Woo.
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New Bitcoin Whales Face $6.95 Billion in Unrealized Losses After Crypto Market Crash
Meanwhile, new Bitcoin whales are facing an unrealized cumulative loss of over $6.95 billion after the latest crypto market crash saw Bitcoin fall below the key $113,000 level.
“Bitcoin is trading below its average cost basis of around $113,000, leaving it with $6.95 billion in unrealized losses, the largest since October 2023.” wrote crypto analytics platform CryptoQuant in a Tuesday X article, adding that this cohort “holds approximately 45% of the total cap made by whales.”
Despite falling investor confidence, analysts noted Bitcoin’s decline in four days to $104,000 as a healthy correction that eliminate excess leveragewhich encourages market players to adopt a more conservative position.
Meanwhile, the supply of short-term Bitcoin holders has increased and “hot money” is taking up a larger share of the market, blockchain analytics firm Glassnode wrote in a statement. report Tuesday.
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