Bitcoin News Today: Bitcoin Whale's Aggressive Short Bet Ignites Market Integrity Debate

A prominent Bitcoin whale, linked to former BitForex CEO Garrett Jin, has significantly increased its short position on Bitcoin, raising concerns about market volatility and allegations of insider trading. The whale, identified by its Ethereum address "7283ae," deposited $40 million in USDC on decentralized exchange Hyperliquid and opened a 10x leveraged short position valued at $340 million, betting on a decline in Bitcoin's price. This move follows a previous $200 million profit from shorting Bitcoin and Ethereum ahead of former U.S. President Donald Trump's October 10 tariff announcement on Chinese goods, which triggered a $19 billion liquidation event in the crypto market, according to InsideBitcoins.

The whale's current short position, entered at an average price of $116,009, has already generated over $700,000 in unrealized profits as Bitcoin's price retreated to $111,910. However, the position faces liquidation risks if Bitcoin surpasses $130,460, a level that would erase the gains. Blockchain analytics firm Arkham Intelligence labeled the trader a "Trump insider whale," a characterization reported by The Economic Times. Jin, while denying direct ties to the Trump family, confirmed the whale's connection to his clients' funds but rejected allegations of insider trading, according to CoinSpeaker.

Market analysts have highlighted the whale's actions as a potential catalyst for further downward pressure on Bitcoin. The cryptocurrency's price has fallen below key technical indicators, including the 50-day and 200-day simple moving averages, and the Relative Strength Index (RSI) has dipped to 37, suggesting oversold conditions. A breakdown below the $110,000 support level could push Bitcoin toward the $100,600 range, according to Fibonacci retracement analysis from TS2 Tech.

The whale's aggressive shorting strategy has intensified debates about market integrity. Critics argue that large, leveraged positions held by anonymous actors with potential access to non-public information create unfair advantages. However, proponents note that the whale's past profits were achieved through strategic timing rather than confirmed insider knowledge. The U.S. government's recent $74.65 million Bitcoin transfer to a new address, amid its $22.1 billion BTC holdings, underscores institutional interest in the asset, though it has not stabilized the market, as reported by 99Bitcoins.

Bitcoin's broader market context remains mixed. While institutional adoption and ETF inflows have bolstered long-term fundamentals, short-term volatility persists. The cryptocurrency's total market cap has declined to $2.23 trillion, with trading volume dropping 23% to $73.3 billion. Analysts like Arthur Hayes of BitMEX have suggested that increased U.S. dollar liquidity from quantitative easing could eventually support Bitcoin's price, but immediate risks from geopolitical tensions and leveraged trading remain elevated, as noted by CoinSpeaker.