Bitcoin News Today: Whales Redirect $3.8B to ETH, Sparking Volatility as Bitcoin OG's Leverage Bets Remain Active

A prominent Bitcoin "OG" has executed a series of high-profile leveraged positions on decentralized exchange Hyperliquid, including a $329 million short on Ethereum (ETH) with 12x leverage and an expanded $449 million short on Bitcoin (BTC) with 40x leverage. According to blockchain analytics from Lookonchain and on-chain tracking platforms, the trader deposited $30 million in USDC to establish the ETH short and later added $5 million in collateral to protect the BTC short position, which currently holds an unrealized profit of $4.4 million. The BTC short, valued at 5,406 BTC, is at risk of liquidation if the price rises above $85,940.

The Bitcoin OG's actions reflect a broader rotation of capital from BTC to ETH, with the trader also depositing 968 BTC ($106.44 million) into Hyperliquid to facilitate spot ETH purchases. This strategy aligns with a trend observed in Q3 2025, where whale wallets increased ETH exposure by $3.8 billion through structured OTC and derivatives trades. The trader's ETH short position, totaling 160,234 ETH, was initially liquidated after a margin shortfall but retained a $1.86 million profit.

Market analysts note that such large-scale leveraged positions amplify volatility, particularly in derivatives markets. For instance, the BTC short faced coordinated liquidation attempts by traders like CBB (@Cbb0fe), who rallied a team to drive BTC above $84,690, forcing the whale to add collateral. Despite these efforts, the BTC short remains active, with Hyperliquid emphasizing its role in enabling transparent high-leverage trading.

The Bitcoin OG's strategy also includes a $390,000 long position in the MELANIA token (5x leverage), highlighting the entity's diversified approach to crypto assets. Meanwhile, broader market data shows increasing whale activity in ETH, with $456 million in ether inflows attributed to "natural rotation" from BTC profits. Analysts like Nicolai Sondergaard of Nansen suggest this trend signals growing investor appetite for altcoins with higher upside potential.

Hyperliquid's prominence in these trades underscores its role as a leading decentralized derivatives platform, with daily trading volumes second only to Uniswap and Raydium. The platform's HLP vault has absorbed losses from prior liquidation events, including a $4 million loss from a $306.85 million ETH long position. As BTC consolidates near $83,455 and ETH stabilizes at $4,479, the interplay between whale positions and market liquidity will likely shape near-term volatility.

Source: [1] Nftevening.com (https://nftevening.com/trader-short-330m-on-hyperliquid/)

[2] Blockchain.News (https://blockchain.news/flashnews/bitcoin-og-deposits-968-btc-106-44m-to-hyperliquid-rotates-to-eth-spot-whale-btc-to-eth-flow)

[3] The Daily Hodl (https://dailyhodl.com/2025/03/18/crypto-whale-opens-332000000-bitcoin-short-position-sees-profits-even-after-getting-hunted-on-chain-data/)

[4] The Cryptonomist (https://en.cryptonomist.ch/2025/09/01/whale-shifts-from-bitcoin-to-ethereum-4000-btc-for-96859-eth-position-at-approximately-3-8-billion-and-spotlight-on-futures/)

[6] The Blockchain (https://www.the-blockchain.com/2025/03/17/bitcoin-whale-shorts-445m-traders-rally-for-liquidation-attempt/)

[7] TradingView (https://www.tradingview.com/news/newsbtc:ea5c71d51094b:0-bitcoin-whale-shorts-445-million-in-btc-traders-plot-explosive-liquidation/)

[8] MoneyCheck (https://moneycheck.com/crypto-whale-shorts-5400-btc-while-going-long-on-melania-token/)

[9] Cointelegraph (https://cointelegraph.com/news/ethereum-whales-buy-456m-eth-bitcoin-rotation-altcoin-season-2025)