A notable trader, who previously gained significant profits by shorting Bitcoin and Ethereum just before a major market downturn, has once again initiated new short positions amidst signs of market recovery. Recent blockchain data from Lookonchain revealed that this investor entered a short position at $115,783 and currently holds 3,440 BTC in shorts, valued at approximately $392.67 million, with unrealized profits nearing $5.7 million and a liquidation threshold set at $128,030.
Despite Bitcoin rebounding to around $115,000 over the weekend, this trader has aggressively expanded their short position, signaling a renewed confidence in the bearish trend. The actions have sparked discussions among market participants regarding whether this strategy is aimed at influencing weak long positions or is part of a broader, calculated scheme to induce another market crash.
This trader has become well-known in crypto circles, often referred to as a “Trump insider” following a significant trading episode where they profited an estimated $160 million by shorting the market just before a tariff announcement by Donald Trump. This timing raised eyebrows and speculation about potential collusion between political events and trading strategies.
Adding to the growing apprehension in the markets, other prominent players on the Hyperliquid trading platform have also entered bearish positions. A whale identified as 0x9eec9 is currently holding $98 million in shorts across multiple cryptocurrencies, including DOGE, ETH, PEPE, XRP, and ASTER, while another whale, 0x9263, has bet $84 million against SOL and BTC. These moves indicate that these are not impulsive decisions from retail investors but rather deliberate strategies by experienced traders anticipating a downward trend.
Since the recent market crash, there has been an increase in hedging activities and put options buying, reflective of a growing bearish sentiment among market participants. The magnitude and timing of these large bets are contributing to sustained pressure on Bitcoin and the overall cryptocurrency markets, especially as volatility re-emerges as a significant factor to watch.
