Bitcoin News Today: BitcoinOG's Loss Highlights Risks of Leveraged Crypto Trading

A prominent Bitcoin whale known as "BitcoinOG," celebrated for accurately shorting the October 11 crash and earning over $197 million in profits, according to a Yahoo Finance report, has incurred a $3 million loss on a long position in recent days, as BeInCrypto reported. This reversal comes as the trader, who has been depositing $1.48 billion worth of BTC into exchanges like Kraken, Binance, and Hyperliquid since October 1, navigates a volatile market marked by profit-taking and renewed bearish sentiment.

BitcoinOG's actions have been mirrored by another veteran whale, Owen Gunden, who moved $364.5 million in BTC to Kraken between October 21 and November 3, the Yahoo report said. These movements, combined with broader market dynamics, have triggered speculation about potential selling pressure and a possible correction. CoinGlass data reveals $260 million in long positions liquidated within four hours as Bitcoin dipped to $115,000, reflecting heightened uncertainty, CoinDesk reported.

The BitcoinOG whale's recent strategy has shifted from shorting to long positions, with current holdings including 32,802 ETH ($109 million) and 130,566 DOGE ($21,000), BeInCrypto reported. However, these positions now show a combined unrealized loss of $3.5 million, the outlet added, underscoring the risks of leveraged trading in a market prone to rapid swings. Meanwhile, BitcoinOG has also added $20 million in USDC to expand exposure to BTC and ETH, signaling a cautious repositioning.

The market's turbulence is further compounded by a third major profit-taking wave in the 2023–2025 bull cycle, as identified by CryptoQuant, CoinDesk noted. This wave, marked by $6–8 billion in realized gains, has historically preceded consolidation periods of two to four months. Recent on-chain activity, including an 80,000 BTC sell-off by an OG whale on July 25, aligns with patterns observed in prior cycles.

Adding to the volatility, geopolitical tensions—including Trump-era tariff escalations—have dampened risk appetite, CoinDesk observed. The Coinbase premium, a gauge of U.S. investor demand, recently turned negative, indicating waning enthusiasm for Bitcoin among American buyers, the report said.

Analysts caution that while whale deposits often precede volatility, they do not guarantee immediate sales. The interplay between profit-taking, short-term holder activity, and macroeconomic factors will likely determine the market's next move. As BitcoinOG and other OGs navigate this landscape, the crypto derivatives market remains a high-stakes arena for both seasoned players and retail traders.