TLDR
- A whale trader has expanded their Bitcoin short position to $340 million despite the cryptocurrency’s recent recovery
- The same trader earned $200 million last week by shorting Bitcoin 30 minutes before Trump’s tariff announcement
- Bitcoin dropped to $104,000 on Friday but has since rebounded to approximately $113,000
- U.S.-China trade tensions continue as Beijing vows to “fight to the end” while Washington pursues diplomatic talks
- Analysts suggest Bitcoin needs to break above $120,000 to confirm bullish momentum
A prominent cryptocurrency trader known as the “Trump Insider Whale” has increased their Bitcoin short position to $340 million. This move comes despite Bitcoin’s recovery from last week’s sharp decline.
The whale made headlines after earning $200 million in profits by shorting $700 million worth of Bitcoin and $350 million in Ethereum. The trades were executed just 30 minutes before President Trump announced 100% tariffs on China.
Bitcoin plunged to $104,000 on Friday following the tariff news. The crash wiped approximately $500 billion from the total cryptocurrency market capitalization. Bitcoin had reached an all-time high of $126,000 earlier that week.
The cryptocurrency briefly recovered Monday, climbing to $115,000 after Trump suggested relations with China would improve. However, Bitcoin has since retreated to around $113,000 as trade tensions persist.
China Responds to U.S. Trade Measures
China stated Tuesday it is prepared to “fight to the end” in any trade conflict with the United States. Beijing accused Washington of discriminatory trade practices while defending its export controls on rare earth materials.
The trade dispute stems from China’s restrictions on rare earth exports. These materials are critical for various technologies and manufacturing processes.
U.S. Treasury Secretary Scott Bessent confirmed ongoing discussions between American and Chinese officials. The talks aim to prevent escalation into a full trade war.
Market data from Polymarket shows only 13% probability that the 100% tariffs will take effect by November 1. This suggests traders believe the situation may be resolved diplomatically.
Whale Position and Market Analysis
Data from HypurrScan reveals the whale currently holds an unrealized profit of approximately $4 million. The trader’s entry price was $116,000 with a liquidation price set at $130,000.
The precise timing of the whale’s initial trades has sparked speculation about potential insider knowledge. However, no evidence of wrongdoing has been presented.
Crypto analyst Egrag Crypto noted that Bitcoin must rise above $120,000 to confirm continued bullish momentum. The analyst identified $117,000 as a critical support level that needs to hold.
Cryptocurrency Market Overview
The broader digital asset market remains under pressure. Ethereum fell to $3,400 over the weekend and currently trades near $4,116. XRP has dropped below the $3.00 mark.
Traditional safe-haven assets have attracted investor capital. Gold reached new record highs Tuesday as market participants sought lower-risk investments.
Veteran trader Peter Brandt maintains the Bitcoin bull market remains intact despite recent volatility. However, the whale’s expanded short position suggests at least one major trader anticipates further price declines.
Other major cryptocurrencies show mixed performance. Solana gained 4.8% while Cardano added 1.1%. Dogecoin decreased 0.7% during the same period.
Bitcoin’s price action over the coming days will likely depend on developments in U.S.-China trade negotiations and overall risk sentiment in financial markets.
