Bitcoin Whale Reloads Massive $226M Short Bet, Setting Liquidation Point at $123K

A notorious crypto whale, who recently profited over $197 million by accurately shorting the October market crash, has doubled down on a bearish outlook for Bitcoin (BTC) by opening a new, massive leveraged short position. This move has injected significant volatility and divided market sentiment as Bitcoin struggles to maintain a recovery.

I. The Whale’s Massive Short Position

Dubbed the “Bitcoin OG” whale, this investor closed all previous short positions after the crash, securing a profit of over $197 million across two wallets, only to re-enter the market days later with a significantly larger bet against BTC. The whale’s new position carries immense size and risk: Position Size (Active): The total active leveraged short position on Bitcoin is valued at a massive $226.6 Million.Leverage: The position is opened with 10x leverage.Initial Funding: The position was initially opened after the trader transferred $30 million in USDC to the Hyperliquid exchange.Current Status: The short is currently showing an unrealized profit of approximately $6.8 million.Liquidation Price: The key price level to watch is $123,282. If Bitcoin’s price reaches this point, the whale’s massive position will be liquidated. In addition to the leveraged short, blockchain analytics firms note that the same trader has been actively selling Bitcoin, depositing 5,252 BTC (valued at over $587 million) into major exchanges and Hyperliquid since the October 11 market crash.

II. Market Divide and Liquidation Watch

The whale’s bearish bet is contrasted by several other large traders who are taking significant bullish positions (longs) on BTC, ETH, and SOL, highlighting a sharp divide in market conviction. Bullish Bets: Multiple traders have recently moved millions in USDC to open large, leveraged long positions, betting on a market comeback.Volatility Fuel: The opposing, high-leverage positions are creating volatility. If Bitcoin rallies toward $123,000, it could trigger the liquidation of the whale’s $226.6 million short, potentially fueling a massive short squeeze and a rapid price spike. Conversely, a price drop would yield huge profits for the whale and could trigger long liquidations.BTC Price Action: Bitcoin briefly rebounded above $114,000 before retreating to around the $108,000 level, underscoring the turbulence caused by these massive opposing bets.

Conclusion

The renewed and significantly larger short position by the whale who successfully predicted the last crash is a major indicator of persistent bearish sentiment at the top of the market. With the liquidation price set at $123,282, the days ahead will be critical. The clash between this massive short and the bullish longs taken by other traders sets the stage for potential extreme market volatility, with the breaking of the $123,282 level being the key event to watch for a possible short squeeze.

Disclaimer

This article is for informational purposes only and is based on third-party on-chain analysis and market movements. It does not constitute financial or investment advice. High-leverage trading is extremely volatile and carries a high risk of loss. The cryptocurrency market is volatile, and all investment decisions should be preceded by thorough personal research (DYOR) and consultation with a qualified financial advisor.