Crypto Whale Closes Short Positions on BTC and ETH for $52,000 Profit

A crypto whale, identified by address 0x3d053, closed BTC and ETH short positions on January 12, netting $52,000 in profit. The whale has a history of strategic trading, frequently entering and exiting positions at key price levels. It has earned $110,978.73 in monthly profits and $92,917.32 in lifetime profits, according to HyperInsight monitoring data.

Meanwhile, another whale, address 0x720a6, liquidated an ETH long position for $257,000 in profit. This whale has focused on ETH trend trades since October 2025, accumulating a total profit of $3.4105 million.

Market sentiment remains cautious as crypto prices continue to face downward pressure. Bitcoin holds just above $90,000, with an early-year rally stalled at $94,789. Ethereum struggles to recover above $3,000. Both BTC and ETH ETFs have experienced outflows, with Bitcoin ETFs recording nearly $398 million in outflows on Thursday.

Why Did This Happen?

Whales often close positions to lock in profits as market conditions shift. The whale at 0x3d053 used leverage conservatively and timed its exits at key levels. This strategy aligns with broader market uncertainty and profit-taking behavior observed this week. In addition, Ethereum's outflows suggest increased activity from major players staking and locking up ETH.

How Did Markets React?

Bitcoin ETFs have seen weak demand, with only two of nine U.S. ETFs recording inflows on Thursday. Ethereum ETFs continued their outflow trend for the second consecutive day, while XRP ETFs saw inflows of nearly $9 million. These movements reflect investor caution amid macroeconomic uncertainty and potential policy changes. BlackRock's recent $359 million transfer of BTC and ETH to Coinbase has added to market speculation about larger liquidations or strategic positioning.

What Are Analysts Watching Next?

Analysts are monitoring ETF flows, macroeconomic data, and major institutional moves for insights into market direction. The U.S. labor data, including initial jobless claims and nonfarm payrolls, will be key indicators influencing investor decisions and potential Federal Reserve policy adjustments.

Morgan Stanley is expanding its presence in the crypto market by launching a Bitcoin and Ethereum trading platform and a custodial crypto wallet in 2026. This move signals growing institutional adoption and a shift from earlier skepticism. The wallet will initially be offered to institutional clients and will support tokenized versions of real-world assets, bridging traditional finance with blockchain-based investments.

Ethereum's net outflows of -$1.06 billion this week, combined with a 120% spike in validator entry queue activity and record address growth, suggest that the post-holiday period is being used for long-term staking and positioning. Analysts are also watching the 50-day moving average at $3,027 to determine whether Ethereum will break this critical support level.