Bitcoin News Today: Bitcoin Whale Bets $420M on Correction as ETFs Fuel Bull Run

A Bitcoin whale executed a $420 million short position on Hyperliquid on October 9, 2025, leveraging $80 million in USDC margin with 6x leverage to target a potential price decline in Bitcoin (BTC). The whale also transferred $50 million to Binance, suggesting a hedging strategy or parallel shorting activity. This move followed BTC reaching an all-time high of $126,198 on October 6, 2025, and a prior sale of 3,000 BTC ($363.87 million) two days earlier. The short trade has a liquidation price of $140,660 per BTC, and the whale is currently up $660,000, according to on-chain data from Lookonchain and Arkham [1].

The trade has intensified market speculation about a potential BTC price correction. Following the whale's actions, BTC fell below $120,000, trading at $120,300 with a 24-hour volume of $71.26 billion. Analysts note that large players increasingly influence crypto markets, with Hyperliquid's top whale positions totaling $3.3 billion in short bets as of October 2025, compared to $1.34 billion in long positions [2]. This imbalance reflects a broader bearish sentiment among institutional traders, despite record inflows into U.S. spot Bitcoin ETFs and 99% of BTC holders remaining in profit [3].

The whale's strategy aligns with a broader trend of capital rotation from Bitcoin to Ethereum (ETH). For instance, a separate whale sold 31,151 BTC ($3.4 billion) since mid-August 2025, converting the proceeds into ETH. This shift has pressured Bitcoin below key support levels, pushing prices near $107,000. While the whale still holds nearly 50,000 BTC ($5.4 billion), the move underscores a tactical hedge rather than a structural exit from Bitcoin [4].

Market dynamics highlight the risks of leveraged trading. Hyperliquid's platform saw cascading liquidations worth $388 million during a single-day ETH price drop in June 2025, underscoring the fragility of high-leverage positions. In response, the platform reduced BTC leverage caps to 40x and ETH to 25x, aiming to stabilize trading conditions. These adjustments reflect growing regulatory scrutiny and the need for risk mitigation in a market increasingly dominated by large players [6].

The whale's actions have sparked debate within the crypto community. While some view the short as a bearish signal, others argue it could be part of a complex hedging or arbitrage strategy. The trade also raises questions about market manipulation risks, as large positions can amplify volatility. For example, a 50x leverage whale profited $16.3 million shorting BTC in June 2025 but later incurred a $4 million liquidation loss, illustrating the double-edged nature of leveraged trading [6].

Analysts caution that while the whale's short may temporarily depress BTC prices, long-term fundamentals remain robust. Bitcoin's dominance has risen to 59.09%, and ETF inflows have exceeded $60 billion cumulatively since April 2025. However, macroeconomic factors-such as Japan's revival of "Abenomics" and U.S. monetary policy uncertainty-add complexity to the outlook. The market's next move will likely hinge on whether large players continue to capitalize on short-term volatility or realign with Bitcoin's long-term bullish trajectory [7].

Source: [1] Cryptotimes (https://www.cryptotimes.io/2025/10/09/bitcoin-whales-420m-short-position-sparks-market-buzz/) [2] holder.io (https://holder.io/news/top-hyperliquid-whales-bet-3b-short-positions/)