Ethereum News Today: Crypto Whale Boosts $169M Short Bet on Bitcoin, Ethereum as Derivatives Volume Hits Record $85.7T

A major crypto whale has significantly increased bearish exposure in the market, adding to their Bitcoin short position and initiating new short positions in Ethereum and Solana. The total value of these leveraged positions stands at roughly $169 million. The move came amid weak U.S. spot demand and a negative Bitcoin premium, suggesting limited appetite for buying pressure in regulated markets.

Bitcoin traded around $87,540 on December 29, 2025, showing minimal downside despite the size of the bearish bets. The trader's actions, executed over five hours via perpetual futures, reflect a derivatives-heavy strategy rather than direct spot sales.

This whale activity coincides with a broader trend in the crypto derivatives market, which reached a record $85.7 trillion in trading volume for 2025. Binance led the pack with about 29.3% of the total volume, while OKX, Bybit, and Bitget also saw substantial participation.

Market Conditions and Derivatives Dominance

The trader's timing aligns with persistently weak U.S. spot demand, as evidenced by the Coinbase Bitcoin Premium Index at -0.086. This metric historically signals subdued demand from U.S. investors and institutions, limiting the ability of spot buyers to absorb sell pressure from leveraged derivatives positions.

Derivatives markets have increasingly dominated trading activity, especially as spot markets remain passive. Sustained negative premiums often precede periods of range-bound or downward price movement, as derivatives players gain the upper hand until fresh spot inflows emerge.

In a separate but related development, Bitmine Immersion Technologies, Inc. revealed that it now controls 3.41% of the total Ethereum supply, making it the largest Ethereum treasury globally. The company's total crypto and cash holdings amount to $13.2 billion, with 4.11 million ETH valued at approximately $12.1 billion.

Bitmine continues to acquire ETH aggressively, adding 44,463 tokens in a single week. The company is preparing to launch its Made in America Validator Network (MAVAN) in early 2026, projecting annual staking fees of $374 million based on a 2.81% composite Ethereum staking rate.

Risks to the Outlook

Despite the whale's bearish bets, Bitcoin has not seen a significant price drop. The market remains stable, with leverage building without triggering widespread liquidations. However, if U.S. spot demand does not recover, the bearish positions could exert prolonged downward pressure on Bitcoin and other altcoins.

Experts caution that large short positions often lead to volatility, especially if market sentiment shifts rapidly. While the current setup allows for gradual price influence, a sudden influx of buyers could challenge these positions and lead to a reversal in the near term.

What This Means for Investors

For investors, the expanding short positions highlight the importance of monitoring derivatives activity alongside spot price movements. The negative premium on Coinbase suggests that derivatives traders may have more control over near-term price action, particularly if U.S. institutions remain uninvolved.

Meanwhile, the growth in Ethereum holdings by Bitmine illustrates the increasing institutional interest in crypto assets. As companies continue to accumulate large reserves, the market could see more long-term stability from these treasuries, even amid short-term bearish dynamics.