Bitcoin News Today: Crypto Whale's $21M Profit Signals Contrarian Market Shift Amid Surging Shorts

A prominent cryptocurrency whale liquidated leveraged short positions in Bitcoin (BTC) and Ethereum (ETH) at the overnight market bottom, securing a profit of $21.82 million. The trader, identified by on-chain analysts as a high-profile participant, had previously incurred significant losses in long ETH positions before pivoting to aggressive shorting strategies. According to data from ChainCatcher and on-chain tracker Yu Jin, the whale's BTC short position was opened at $111,292 with 25x leverage, while the ETH short was initiated at $4,278 with 15x leverage ChainCatcher^[6]. The liquidation occurred as Bitcoin and Ethereum faced downward pressure amid heightened volatility linked to Federal Reserve rate cut expectations and shifting institutional sentiment Cryptopolitan^[2].

The whale's BTC short position, valued at $150 million, carried a liquidation threshold of $114,770, while the ETH short of $50 million faced a liquidation price of $4,798 ChainCatcher^[6]. The profit realized from these positions aligns with broader market trends of short-term bearish bets, as 52% of BTC holders across exchanges were shorted in late October Cryptopolitan^[2]. The liquidation event coincided with a broader $451 million in BTC-related liquidations across all exchanges, reflecting systemic stress in leveraged positions Cryptopolitan^[3].

Market analysts noted the whale's actions as a contrarian indicator. Large-scale liquidations often signal extreme sentiment, with short squeezes or rebounds possible if prices reverse Gate.com^[1]. The trader's strategy appears to have capitalized on a temporary market correction, as Bitcoin's price dipped below $120,000 following the public revelation of the short position The Crypto Times^[5]. Despite the profit, derivatives data showed mixed signals: Bitcoin's funding rate remained positive at 0.0043%, indicating lingering long bias, while short liquidations totaled $63 million in 24 hours compared to $121 million in long liquidations Ambcrypto^[4].

The whale's move underscores growing institutional caution. Ethereum spot ETFs experienced $8.54 million in net outflows on October 9, breaking a streak of inflows, while Bitcoin ETFs saw $198 million in inflows Cryptopolitan^[2]. This divergence highlights shifting capital flows toward Bitcoin amid uncertainty in the second-largest cryptocurrency's performance.