Bitcoin News Today: Bullish Sentiment at Odds with Whale's High-Stakes BTC Short as Crash Threshold Looms

A prominent cryptocurrency investor holding approximately $11 billion in Bitcoin has initiated a significant bearish bet, opening nearly $900 million in leveraged short positions against Bitcoin (BTC) and Ether (ETH). The whale executed a $600 million 8x leveraged short on Bitcoin and a $330 million 12x leveraged short on Ether, according to blockchain data platforms Onchain Lens and Lookonchain Coindesk^[1]Cointelegraph^[2]. These positions carry liquidation thresholds at $133,760 for Bitcoin and $4,613 for Ether, meaning a price rise above these levels would trigger forced closures Cointelegraph^[2]. The whale's strategy signals a high conviction in a near-term market correction, despite broader bullish sentiment reflected in positive funding rates for Bitcoin derivatives Coindesk^[1].

The whale's actions align with broader market dynamics, as aggregated selling pressure from smaller investor cohorts has contributed to recent price declines. Blockchain analytics firm CryptoQuant noted that shrimp (less than 1 BTC), crab (up to 10 BTC), and fish (50–100 BTC) addresses collectively sold 6,723 BTC in the past 24 hours, amplifying downward momentum Coindesk^[1]. Over 52% of Bitcoin holders on exchanges are currently short, while 51% of Ether traders have adopted bearish positions, per data from CoinAnk Coindesk^[1]. These figures underscore a shift in short-term market sentiment, with speculative traders increasingly anticipating a pullback.

The whale's strategy has sparked heightened scrutiny from the crypto community. Onchain data reveals that the same entity previously rotated $5 billion of Bitcoin into Ethereum in August, a move that briefly boosted ETH's price by 8% COINOTAG^[4]. The recent BTC short follows a $360 million Bitcoin transfer to Hyperunit, a custodial trading platform, raising speculation about potential Ethereum accumulation COINOTAG^[4]. However, the whale's bearish bets suggest a departure from prior bullish strategies, reflecting concerns about overvaluation and macroeconomic headwinds, including a stronger U.S. dollar and elevated leverage in the market .

Market reactions to the whale's positions have been mixed. Bitcoin's price retreated to $121,350 from a record high of $126,080, while Ethereum fell to $4,492, down 4.6% . CoinGlass data indicates $635 million in liquidations across exchanges in the past 24 hours, with Ethereum longs accounting for $142 million of the losses . Analysts remain divided on the implications. Some view the correction as a healthy consolidation before a potential rally to $132,000–$135,000 for Bitcoin, contingent on sustained ETF inflows and improved macroeconomic signals . Others warn that high leverage (8x–12x) in the whale's positions could amplify volatility if liquidation triggers are breached, potentially reversing short-term trends Decrypt^[5].

The whale's activities highlight the growing influence of large players in shaping crypto markets. While individual whale actions can sway sentiment, aggregated retail selling and macroeconomic factors remain critical drivers of price action. As the market awaits Bitcoin's next move, traders are closely monitoring liquidation thresholds and leverage levels for further signals.