A significant player in the cryptocurrency market has made headlines again, this time by establishing a massive short position of $235 million against Bitcoin, amid ongoing economic uncertainties including tariff concerns and the possibility of a government shutdown. Known colloquially as a “Bitcoin whale,” this investor has leveraged their position tenfold, capitalizing on the potential for a price decline of the cryptocurrency.
The whale made this move on Monday, coinciding with Bitcoin trading at approximately $111,190. Currently, this position is at risk, showing an unrealized loss of $2.6 million, which could escalate quickly if Bitcoin’s price exceeds $112,368—a scenario that could trigger liquidation of the position according to data from Hypurrscan.
This latest bet follows a highly profitable week for the whale, who reportedly gained around $200 million from a previous short position that took advantage of a sharp downturn in the cryptocurrency market. Blockchain data platform Arkham noted on their social media account that this same whale has now taken an additional $30 million into the trading platform Hyperliquid, indicating a continued bearish outlook.
In addition to setting up this new short position, the whale has engaged in significant activity on the blockchain, transferring $540 million worth of Bitcoin to new wallets, which include a substantial amount—$220 million—sent to Coinbase exchange’s wallets just within the last week.
This $11 billion whale resurfaced only a couple of months ago and notably shifted around $5 billion worth of Bitcoin (BTC) into Ether (ETH). This move briefly positioned the whale ahead of Sharplink, previously the second-largest corporate treasurer of ETH holdings.
Market analysts have pointed to the large-scale selling from previously inactive Bitcoin whales as a major force influencing Bitcoin’s price performance over the last month. According to Willy Woo, an analyst and early Bitcoin adopter, this trend significantly limited Bitcoin’s price movements through August.
At the same time, many new Bitcoin whales are contending with substantial unrealized losses, amounting to $6.95 billion, in the wake of recent market instability that saw Bitcoin trading below the crucial $113,000 threshold. Crypto analytics platform CryptoQuant reported that these whales are currently holding around 45% of the total Whale Realized Cap, with Bitcoin trading below its average cost basis of approximately $113,000.
Although broader investor sentiment appears to be decreasing, some analysts suggest that Bitcoin’s recent drop to $104,000 could represent a healthy correction that has effectively expelled excess leverage from the market. This shift has prompted a reevaluation of risk among traders. Furthermore, reports indicate an increase in the supply of short-term Bitcoin holders, with a notable rise in “speculative capital” gaining traction within the market as observed by the blockchain analytics firm Glassnode.
