A significant development in the cryptocurrency market unfolded as a prominent whale on the Hyperliquid platform opened substantial short positions against Bitcoin and XRP, leveraging a total of $140 million with a 20x multiplier. The move, which has generated considerable attention in the crypto community, has already yielded approximately $3.1 million in profits for the unknown wallet holder, reportedly within just nine hours.
The wallet in question was initially funded with $7 million in USDC from a secure Arbitrum wallet. This funding originated from a zero address, making it challenging to trace the source of the funds further. This lack of transparency has spurred speculation among analysts and traders, who ponder whether the wallet holder might possess insider knowledge. This speculation is reminiscent of a recent incident involving another trader labeled the “Trump insider whale,” who reportedly profited nearly $200 million by strategically shorting the market prior to a significant liquidation event.
The Hyperliquid whale executed two leveraged shorts: one against Bitcoin at a target entry price of $102,978 and another against XRP at an average price of $2.30. As of the latest data from block explorer HypurrScan, the Bitcoin short position has gained $2.3 million as the cryptocurrency’s value dipped to $101,110, while the XRP position increased by $808,000 as the token fell to $2.21.
These strategic trades come as the broader cryptocurrency market teeters on the edge of a bearish downturn, with numerous indicators suggesting a potential bear market. The crypto fear and greed index recently registered a six-month low of 21, indicating “Extreme Fear” within the investor community when Bitcoin fell below the $100,000 mark for the first time in half a year.
In a related development, institutional crypto firm Galaxy announced a revision of its Bitcoin price target for the end of the year, downgrading it from $185,000 to $120,000. This adjustment reflects concerns that Bitcoin’s price may be entering a “maturity era” characterized by reduced volatility, largely driven by its increasing alignment with traditional financial markets.
However, not all indicators point toward an overwhelmingly bearish sentiment. Predictors on Myriad, a prediction market operated by Decrypt’s parent company Dastan, suggest that Bitcoin is approximately 56% more likely to reach $115,000 than to drop to $85,000, signaling that some traders remain optimistic.
Despite this nuance, the heavily leveraged nature of the Hyperliquid whale’s positions implies that minor fluctuations in price can translate into substantial profits or losses, emphasizing the high-stakes environment of current cryptocurrency trading.
