Bitcoin News Today: Insider Suspicions Mount as Bitcoin Whale's Short Triggers $20B Crash

Bitcoin whale reveals 3.5K BTC short: key support levels to watch next

A prominent Bitcoin whale, identified as a "Satoshi-era OG" holding 86,000 BTC since 2011, opened over $1.1 billion in leveraged short positions against Bitcoin (BTC) and Ethereum (ETH) just 30 minutes before U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports on October 10, 2025 Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. The whale's strategy included a 10x leveraged short on 6,189 BTC ($752.9 million) with a liquidation price of $130,810 and a 12x short on 81,203 ETH ($353.1 million) with a liquidation price of $4,589 Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. The market reacted violently, sending Bitcoin from above $122,000 to briefly below $102,000 within hours. According to on-chain analysts, the whale pocketed $190–$200 million in realized profits by exiting 90% of BTC shorts and fully closing ETH positions Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1].

The timing of the trades has sparked intense speculation about insider knowledge. Blockchain analyst @mlmabc noted the whale's deposits began on October 9, with additional liquidity added via Binance, and emphasized the precision of the shorting activity just before Trump's speech Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. Crypto researcher Maartunn linked the whale's Satoshi-era origins to potential government connections, suggesting "insider ties may have provided advance knowledge" of the tariff announcement Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. Further scrutiny emerged as YouTuber Coffeezilla highlighted the whale's final ETH short was placed at 20:49 GMT, just one minute before Trump's tweet at 20:50 GMT BTCUSD Trader's Cheat Sheet for Bitcoin - Barchart.com^[3].

The market collapse triggered record liquidations, with over $19.33 billion in positions wiped out in 24 hours. Bitcoin alone accounted for $5.38 billion in liquidations, while Ethereum lost $4.43 billion Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. Hyperliquid, where the whale's positions were hosted, reported a $203.36 million single liquidation, the largest in the crash Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. Analysts debated the true scale of losses, with some suggesting the figure could exceed $30–$40 billion when accounting for decentralized exchanges Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1].

Technical analysis highlights critical support levels for Bitcoin. A Barchart.com cheat sheet identified $113,379 as the pivotal pivot point, with immediate resistance at $119,381 and deeper support at $102,258 . If Bitcoin breaches $113,379, the next key level is $102,258, below which further declines could test $96,256 and $79,133 . Conversely, a rebound above $119,381 could signal a short-term recovery, though analysts caution that sustained bullish momentum will require reclaiming the $120,000 threshold .

The whale's remaining exposure includes a 10x short on 6,189 BTC ($752.9 million) and a 12x short on 81,203 ETH ($353.1 million), with unrealized profits of $27 million Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1]. Despite these bearish bets, the whale still holds 49,634 BTC ($5.43 billion) across four wallets, indicating a complex strategy of aggressive shorting alongside long-term BTC retention Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M^[1].

Market observers remain divided on the implications of the event. While some view it as a sign of systemic fragility in leveraged crypto markets, others argue it reflects healthy price discovery. Institutional confidence in Bitcoin persists, with corporate treasuries and ETFs continuing to accumulate BTC despite the volatility Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider Suspicion^[2]. However, the episode has intensified calls for regulatory scrutiny of high-leverage trading and exchange transparency, particularly following reports of technical failures on platforms like Binance during the crash .