Crypto Whale Resumes Short Position with $35M Bet Against Bitcoin, Ethereum, and Solana

A major crypto whale has reopened a short position in the market, allocating $35 million to bet against Bitcoin, Ethereum, and Solana. The whale previously secured $14.5 million in profits by closing long positions across several assets.

The trader, identified on-chain as '255 $BTC Sold,' deployed 20x leverage on the new short positions. This strategy amplifies potential gains but also increases risk exposure.

The whale's actions come amid increased short-term selling pressure in the crypto derivatives and spot markets, which has persisted despite recent accumulation efforts by major corporations like Strategy.

Why Did This Happen?

The whale's pivot from bullish to bearish positioning suggests a belief in near-term price weakness across major cryptos. Analysts note that such high-leverage moves often occur in anticipation of market volatility or trend reversals.

Large-position holders, or whales, are often seen as early indicators of market sentiment. This whale's decision to close longs and open shorts could signal a shift in strategy based on macroeconomic or regulatory developments.

The move is also notable for its scale. While $35 million is a small fraction of daily derivative volume, concentrated whale activity can influence trader psychology and liquidity in specific perpetual swap markets.

How Did Markets React?

Bitcoin, Ethereum, and Solana have seen mixed performance in recent days. Bitcoin briefly climbed above $95,000 after Strategy announced a $1.25 billion BTC purchase, but has since retreated.

The broader crypto market experienced a downturn on Tuesday, with major cryptos like Ethereum and Solana falling for the first time in 2026. This aligns with the whale's bearish positioning, though it is too early to determine if the trend will persist.

Institutional demand for crypto remains strong, as evidenced by recent ETF inflows and corporate accumulation. However, derivatives data continues to show elevated selling pressure, which could support the whale's short-biased outlook.

What Are Analysts Watching Next?

Experts are monitoring the whale's position for signs of a potential market correction. Historical data suggests that large-scale short positions have at times preceded price declines of 10–15% over a few weeks.

Analysts are also watching the impact of corporate accumulation and ETF inflows. Strategy's continued purchases and ETF demand could counterbalance bearish sentiment, potentially neutralizing the whale's influence.

On-chain data is expected to remain a key tool for tracking whale activity. Platforms like Onchainlens and Glassnode provide transparency into the movements of large players, allowing market participants to make informed decisions.

Investors are advised to treat whale activity as one of many data points. While significant, it should be analyzed alongside derivatives market health, trading volume, and macroeconomic factors to form a well-rounded view.