TLDR
- Bitcoin whale with $11 billion portfolio opens $235 million short position at $111,190 price level
- Same trader earned $200 million profit by shorting BTC during October 10 market crash
- Position faces forced liquidation if Bitcoin price exceeds $112,368
- Whale moved $540 million in Bitcoin to new wallets including $220 million to Coinbase
- New Bitcoin whales hold $6.95 billion in unrealized losses as BTC trades below $113,000
A Bitcoin whale holding $11 billion in assets has placed a new short position worth $235 million on BTC. The move signals continued bearish sentiment from large investors following recent market volatility.
The trader opened the leveraged position on Monday at a Bitcoin price of $111,190. This represents a bet that Bitcoin’s price will decline further. The position uses 10-times leverage, allowing the investor to control a larger amount with borrowed capital.
Data from Hypurrscan shows the position currently has an unrealized loss of $2.6 million. The trade will face automatic liquidation if Bitcoin climbs above $112,368. Liquidation occurs when an exchange force-closes a position due to insufficient margin.
Previous Trading Success
This whale gained attention last week after earning $200 million from the October 10 market crash. Bitcoin plummeted from $122,000 to $104,000 that day following President Trump’s announcement of 100% tariffs on Chinese goods.
The trader opened a short position approximately 30 minutes before the tariff announcement. This timing sparked discussion in trading communities about the possibility of insider information. However, no evidence of wrongdoing has surfaced.
Blockchain analytics firm Arkham Intelligence tracked the whale’s activity. The platform reported that the investor transferred $30 million to Hyperliquid exchange before executing the new short trade.
Wallet Movements and Holdings
The whale has been active with wallet transfers over the past week. The investor moved $540 million worth of Bitcoin across different wallets. This included $220 million sent to Coinbase exchange addresses.
The whale first appeared on blockchain analytics radar two months ago. At that time, the investor converted roughly $5 billion in Bitcoin to Ethereum. This swap temporarily made the wallet the second-largest corporate Ethereum holder.
Losses for New Investors
While experienced whales bet on downside, newer large holders face pressure. New Bitcoin whales collectively hold $6.95 billion in unrealized losses. This marks the highest loss level for this group since October 2023.
CryptoQuant data shows Bitcoin trading below its average whale cost basis of $113,000. These newer investors account for approximately 45% of total Whale Realized Cap. Cost basis represents the average purchase price for holdings.
Bitcoin recovered to $114,000 on Tuesday before pulling back. The cryptocurrency currently trades around $108,500. This represents a rebound from the October 10 low near $104,000.
Glassnode analytics noted the correction removed excess leverage from markets. The firm reported increased short-term holder supply and growing speculative capital participation. Analysts view the price drop as a healthy reset after extended gains.
The whale’s current position remains open with liquidation risk at $112,368. Bitcoin needs to rally above this level for the exchange to automatically close the trade.