Bitcoin News Today: Ethereum's Surge Fuels Bitcoin Shorting as Whales Rebalance Leverage Bets

A high-profile Bitcoin short position has expanded to $750 million as institutional and whale traders increasingly adopt leveraged strategies amid volatile market conditions. According to blockchain analytics firm Arkham Intelligence, Abraxas Capital, a major fund with substantial crypto exposure, has incurred an unrealized loss of $119.2 million on its short position, with a liquidation price set at $153,429 for Bitcoin. This development underscores the growing risks associated with high-leverage shorting in a market where Bitcoin's price has surged to record levels CoinJournal^[4].

The whale activity extends beyond institutional players. A persistent Bitcoin shorting whale, active since March 2025, has added $4 million in USDC collateral to Hyperliquid to maintain its position, which now carries a liquidation price of $130,687. Despite a 12.5% price increase in Bitcoin since the position's initiation, the whale continues to adjust margins rather than altering directional exposure . Meanwhile, another whale shifted $76 million in BTC to Ethereum, opening leveraged long positions totaling $295 million across four wallets, with some trades executed at up to 10x leverage .

Market dynamics reflect a broader shift in capital allocation. Ethereum's derivatives open interest surged by 58.65% to $10.54 billion in June 2025, driven by whales leveraging positions between 3x and 10x. This contrasts with Bitcoin's futures market, where traders have adopted a "sell on rally" approach, signaling a potential rotation of capital toward Ethereum . The trend aligns with Ethereum's outperformance, as it delivered a 71.91% return in Q3 2025 compared to Bitcoin's 6.28%, according to Coinglass data .

The leveraged trading environment has also amplified systemic risks. Over $750 million in crypto positions were liquidated in a 24-hour period in July 2025, with short sellers accounting for $625 million of the losses as Bitcoin surged past $122,000. A single $100 million short position on Binance was liquidated during this period, highlighting the vulnerability of high-leverage strategies The Currency Analytics^[5]. Similarly, a 50x leveraged whale on Hyperliquid realized $16.3 million in profits shorting Bitcoin but faced a $4 million liquidation loss, prompting the platform to cap leverage at 40x for BTC and 25x for ETH .

Analysts note that institutional interest in Ethereum has intensified, with institutional holdings rising from $6 billion to $17 billion in a month. This surge coincides with Ethereum ETF inflows and corporate treasury allocations, reinforcing Ethereum's positioning as a leading altcoin in the current cycle . However, the risks of overleveraging remain acute, as 85% of Hyperliquid's top 20 positions were in unrealized loss in August 2025, prompting platform adjustments to leverage limits and multi-exchange oracles .

The interplay between Bitcoin and Ethereum prices has become a focal point. Ethereum's 14% Q2 2025 price surge coincided with a decline in Bitcoin's dominance from 60% to 57%, reflecting capital flows driven by leveraged positions. This dynamic creates self-reinforcing cycles where Ethereum gains are amplified by shorting Bitcoin, while Bitcoin's rally is tempered by selling pressure .