Bitcoin News Today: Bitcoin Whale's 10x Short Triggers $600M Liquidations, Market Balances on Edge

A Bitcoin whale with a history of aggressive shorting has opened a new leveraged position, amplifying market jitters as crypto derivatives traders face mounting losses. The whale, identified as a $11 billion portfolio holder, initiated a $235 million 10x leveraged short on Bitcoin (BTC) at $111,190, according to a Cointelegraph report. The position now faces a $2.6 million unrealized loss, with liquidation triggered if BTC breaches $112,368. This follows a similar $200 million profit-generating short in October when Bitcoin plummeted to $100,000, per the same Cointelegraph report.

The whale's actions coincide with heightened volatility in the crypto derivatives market. Over the past 24 hours, Bitcoin's price oscillated between $107,000 and $113,000, triggering $600 million in forced liquidations across major exchanges, according to a Yahoo Finance report. CoinGlass data shows $355 million in long positions and $301 million in shorts were closed, with Bitcoin accounting for over half the losses. The swings have pushed derivatives activity to record levels, though Kraken's head of derivatives, Alexia Theodorou, noted stabilization in positioning after an initial wave of panic. "The long/short ratio on Bitcoin perpetuals has shifted back toward neutral territory," she said, adding that traders are cautiously eyeing a potential rebound.

Meanwhile, broader market sentiment remains fragile. Large investors now face $6.95 billion in unrealized losses as Bitcoin trades below its average cost basis of $113,000, according to a Yahoo Finance article. CryptoQuant highlighted that short-term holders—often more speculative—have increased their supply, suggesting re-leveraging after recent deleveraging. Technical indicators also point to a critical juncture: Bitcoin's 200-day moving average at $108,000 and liquidation clusters near $112,000 could drive further turbulence.

The whale's strategy underscores institutional-level caution. By rotating $5 billion into Ethereum in September and now re-entering BTC shorts, the investor has positioned itself as a bellwether for macro trends. "Bitcoin is trading below its average cost basis, leaving whales with the largest unrealized loss since October 2023," CryptoQuant tweeted. The whale's recent $30 million transfer to Hyperliquid and $220 million to Coinbase wallets further signals a hedging approach amid tariff concerns and the U.S. government shutdown, as reported by Cointelegraph.

Market analysts remain divided. FxPro's Alex Kuptsikevich warned of a short-term downtrend, while 99Bitcoins analysts described the volatility as a "purge" of excess leverage, as the Yahoo Finance article noted. Whether this marks the start of a sustained bearish phase or a temporary correction remains unclear, but the whale's repeated bets highlight the precarious balance between institutional confidence and speculative fragility.