A trader, known informally as “Trump’s insider,” has reportedly opened a substantial Bitcoin short position worth between $120 million and $127 million at a price of $111,386, ahead of a highly anticipated presidential announcement expected on Tuesday. This has led to widespread concerns among investors regarding a potential market crash reminiscent of the significant liquidation event that occurred on October 11.
This trader has built a reputation for their uncanny ability to make profitable moves in the cryptocurrency market, maintaining an impressive 100% win rate. They gained notable recognition after successfully shorting Bitcoin and Ethereum just before President Trump’s announcement of imposing 100% tariffs on Chinese imports. That strategic move reportedly netted the trader an estimated profit of $160 million to $200 million, as Bitcoin’s price plummeted from $122,000 to below $102,000. Blockchain data firm Lookonchain linked the wallet involved to a veteran trader who accumulated 86,000 BTC dating back to 2011.
Recent reports indicate that this trader has initiated shorts totaling between $120 million and $600 million spanning Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as the time of the Trump announcement approaches, raising alarms of potential insider trading and market manipulation, given the panic surrounding their previous market maneuvers. Currently, Bitcoin is trading around $112,000, despite the significant bearish positioning.
The trader’s prior activity on October 11 solidified their reputation as a market forecaster. According to Lookonchain’s data, they deposited approximately 80 million USDC into Hyperliquid on October 9, followed by additional deposits throughout the week. Their positions included a leveraged short of 6,189 BTC valued at $752.9 million and a 12x leveraged short on 81,203 ETH worth $353.1 million, both with specific liquidation prices set to trigger significant losses should the market pivot unexpectedly.
On-chain analyst @mlmabc reported that the trader managed to close around 90% of their Bitcoin shorts and exited all Ethereum positions at the market bottom on that fateful day, earning realized profits estimated between $190 million and $200 million in a single day. The resulting market collapse led to over 1.66 million liquidations within a 24-hour period, erasing a staggering $19.33 billion in positions, though some analysts speculate the actual figure may be higher, potentially reaching $30 billion or more.
The identity of this trader is traced back to the substantial 2011 Bitcoin accumulation. Records indicate that they sold a considerable amount (35,991 BTC worth approximately $4.43 billion) and reinvested these funds, amassing 886,371 ETH valued at around $4.07 billion.
The trend of bearish betting did not remain isolated to just this trader. On October 14, they opened a new short position of 3,440 BTC valued at $392.67 million, which currently reflects an unrealized profit of $5.7 million. Additional whales also joined in on the bearish sentiment. For instance, one whale (0x9eec9) holds around $98 million in shorts across various cryptocurrencies, including DOGE and XRP, while another (0x9263) has taken a position against SOL and BTC worth roughly $84 million.
Adding to the market’s tension, a dormant Bitcoin wallet recently transferred 2,000 BTC, valued at about $222 million, into 51 different new addresses. The dispersed allocation of these coins into multiple wallets does not seem to indicate a selling intent, suggesting a strategic custodial reshuffling instead.
Furthermore, investigations have revealed that the Trump family’s cryptocurrency ventures have accrued around $1 billion in pre-tax gains over the last year, largely through investments in memecoins, stablecoins, and decentralized finance platforms. Notably, the TRUMP and MELANIA tokens alone accounted for approximately $427 million, while WLFI token sales generated around $550 million. This influx of investments, which includes significant contributions from private investors such as Chinese entrepreneur Justin Sun, who invested $75 million in WLFI, has reportedly bolstered the family’s wealth significantly.
As the situation unfolds, many in the crypto community are watching closely, grappling with the implications of these highly strategic trading moves and the specter of market volatility that could follow the upcoming announcement.
