Bitcoin News Today: Bitcoin's $1.1B Short Gamble Hangs on $106K as Bulls Rally ETFs

Bitcoin's major short positions have surged to over $1.1 billion as several high-profile whales and institutional players have aggressively bet against the cryptocurrency's continued rally. A prominent whale, identified via on-chain analytics platforms, opened a $1 billion short position on Bitcoin (BTC) with 40x leverage on Hyperliquid, a decentralized derivatives exchange, as of May 21, 2025 Coinotag^[6]. The trade, collateralized with $2.3 million in USDC, carries a liquidation price of $106,600, meaning even a modest price increase could trigger a margin call Coinotag^[6]. This move contrasts with broader bullish sentiment, as Bitcoin whales have accumulated over 43,100 BTC ($4 billion) in the past two weeks and spot ETFs have seen $40 billion in inflows Coinotag^[6].

Additional whales have joined the bearish thesis. Another entity, dubbed the "OG whale," raised a $438 million short on BTC with a liquidation price of $139,900, according to LookOnChain Cryptodaily^[9]. Meanwhile, a separate whale increased its BTC short to 6,189 BTC with 10x leverage (notional value ~$7.53 billion) and 81,203 ETH with 12x leverage (~$3.53 billion), citing liquidation prices of $130,810 for BTC and $4,589.3 for ETH Coindesk^[7]. These positions, combined with others, highlight concentrated bearish exposure across the market.

Market reactions to these bets have been volatile. In the past 24 hours, short liquidations reached nearly $1 billion as Bitcoin breached $118,000, triggering cascading closures of leveraged positions Cryptopolitan^[2]. Over 655 million dollars in BTC short liquidations occurred between $118,000 and $118,800, with remaining short liquidity extending to $118,800 Cryptopolitan^[2]. Ethereum also saw $258 million in short liquidations, reflecting heightened volatility in the top two cryptocurrencies Cryptopolitan^[2].

Notable traders have faced losses. James Wynn, a well-known crypto whale, was liquidated for a $27,555 USDC collateralized 40x short on BTC, while another whale, @qwatio, closed all perpetual futures positions after incurring $16.72 million in losses Cryptopolitan^[2]. These events underscore the risks of high-leverage trading during rapid price movements.

The cumulative short exposure has raised concerns about potential short squeezes. Analysts note that a price surge above $106,600 could trigger the liquidation of the 40x leveraged $1 billion BTC short, potentially fueling further upward momentum Coinotag^[6]. Similarly, the OG whale's $438 million short at $139,900 represents a significant barrier for Bitcoin if the market continues to trend higher Cryptodaily^[9].

Institutional activity further complicates the outlook. Two major crypto addresses opened $337 million in BTC, ETH, and SOL shorts with 5x and 3x leverage, according to on-chain data Blockchain.News^[3]. These positions, characterized by substantial collateral and low leverage, suggest institutional bearish sentiment. Meanwhile, Bitcoin's open interest has rebounded to $38 billion, with derivative volumes surpassing $59 billion in the past 24 hours Cryptopolitan^[2].

The market's response to these short positions remains mixed. While some view the bearish bets as contrarian signals, others argue that institutional buying and ETF inflows will overpower short-term corrections. Bitcoin's price has consolidated around $124,000, with key support levels at $120,500–$116,000 and resistance at $123,700–$125,000 . A decisive break above $125,000 could validate bullish momentum toward $129,000, while a failure to hold above $110,000 may reignite bearish sentiment .