Bitcoin News Today: Bitcoin Whales Bet Against Recovery as Ethereum Attracts $9B in Institutional Inflows

A major Bitcoin whale known for a successful short position ahead of the October 10 price crash has significantly increased its bearish bet, now holding a $234 million short position on the decentralized exchange Hyperliquid, according to a Coindesk report. The whale's current long position stands at 2,083.84 BTC, but its aggressive shorting strategy underscores persistent skepticism about Bitcoin's near-term trajectory despite a recent rebound from the October 10 low of $104,000 to $108,500, the Coindesk piece noted.

The whale's latest move follows a sharp price pullback from Tuesday's high of $114,000, with the liquidation price for its short position set at $123,000—a level that would trigger a margin call if Bitcoin breaches it, the Coindesk report added. This bearish stance contrasts with broader market optimism, as institutional investors and large holders (whales) have been accumulating Bitcoin and Ethereum. Blockchain trackers identified 37 Bitcoin transactions exceeding $50 million each in the past week, signaling strategic positioning ahead of potential price inflection points, according to BTCC. The circulating supply of Bitcoin on exchanges has dropped 2.3% this month, the steepest decline since January 2025, according to CoinMarketCap.

The October 10 crash itself was precipitated by President Donald Trump's announcement of an additional 100% tariff on Chinese goods, compounding existing 30% tariffs. This move, coupled with China's tightening of rare earth exports, triggered a sell-off that saw Bitcoin plummet from $122,000 to $104,000 in a single day. The whale in question had already profited $200 million by shorting Bitcoin before the crash, reportedly acting 30 minutes prior to Trump's tariff announcement, the Coindesk piece reported.

While Bitcoin faces bearish pressure, Ethereum has emerged as a focal point for institutional demand. Ethereum ETFs surpassed Bitcoin ETFs in quarterly inflows for the first time, attracting $9 billion in the third quarter of 2025 compared to Bitcoin's $8 billion, according to a Coinpedia analysis. Fund holdings for Ethereum have doubled to 6.8 million ETH, reflecting sustained accumulation by institutional investors. This shift is attributed to Ethereum's yield-generating capabilities through staking and its exposure to on-chain innovation, contrasting with Bitcoin's role as a store of value.

Technical indicators further highlight diverging trends. Bitcoin's price has stalled near $108,500, with $70,000 identified as critical support. Ethereum, however, trades near $3,950, holding above a key $3,670–$3,870 support range that has flipped to a bullish catalyst, the Coinpedia analysis observed. Analysts at XWIN Research Japan note that Ethereum's on-chain activity—marked by whales reaccumulating 218,470 ETH in the past week—suggests a potential 40% rally to $5,600 if current support levels hold.

The mixed signals from whale activity and institutional flows underscore market uncertainty. While some large holders bet against Bitcoin's recovery, others are doubling down on Ethereum's utility-driven narrative. Retail investors are advised to adopt dollar-cost averaging strategies amid volatile conditions, with caution urged against overleveraging in either asset class.