A trader, known for making substantial profits from shorting Bitcoin and Ethereum ahead of a significant market downturn, has once again opened new short positions even as crypto markets begin to show signs of recovery. According to data from Lookonchain, the investor has entered the market with a notable short position of 3,440 BTC, currently valued at approximately $392.67 million. With an entry price of $115,783, the trader is currently sitting on an unrealized profit of nearly $5.7 million, while maintaining a liquidation threshold set at $128,030.
Although Bitcoin rebounded to around $115,000 over the weekend, the trader has aggressively increased their short position, suggesting a renewed confidence in a downward price trajectory. This strategy echoes a prior successful shorting effort, where the trader profited by over $160 million just before a market downturn sparked by Donald Trump’s tariff announcement. Such past performances have led to speculation in the crypto community regarding the role of political insights in timing trades, with some dubbing the trader a “Trump insider.”
To fund this new move, approximately $80 million in USDC was transferred into the Hyperliquid platform, where it was deployed to fund the fresh short positions. Market analysts are now debating whether this is a strategy to purge weak long positions from the market or part of a well-calculated approach aimed at precipitating another significant market collapse.
Further compounding the situation, other prominent traders on the Hyperliquid platform appear to be joining forces with this “Trump insider” by taking substantial bearish positions. One notable whale, identified as 0x9eec9, is sitting on $98 million in shorts across various cryptocurrencies, including DOGE, ETH, PEPE, XRP, and ASTER. Another, under the pseudonym 0x9263, has placed an $84 million bet against both SOL and BTC. These moves indicate a coordinated effort by seasoned players in the market as opposed to the impulsive actions often seen from retail investors.
The current bearish sentiment is further highlighted by an uptick in hedging activities and put options, reflecting a growing concern among traders regarding potential further declines. The significant size and strategic timing of these positions continue to exert downward pressure on the Bitcoin and broader crypto markets, as increased volatility remains a focal point for investors navigating the turbulent landscape.
