Whale's $54.5M Bet Drives Bitcoin 3.3% Weekly Gain

An anonymous wallet made a significant move on Binance Futures, sparking a short squeeze and reviving bullish sentiment in the Bitcoin market. The wallet, identified as '0x1f25,' took a bold position by investing 511.5 BTC using $10 million USDC margin and 20x leverage at an entry price of $106,538. This move risked liquidation at $88,141, demonstrating the whale's confidence in Bitcoin's potential for substantial gains.

This aggressive bet, valued at $54.5 million with 20 times leverage, involved borrowing funds to amplify the Bitcoin trade. The whale's action thrust Bitcoin upwards, bringing it close to the psychological price of $110,000. At the time of writing, Bitcoin was trading around $109,238, marking a 3.3% increase over the past week. This rally coincided with optimism surrounding US-China trade talks, which could ease tech export curbs and boost access to rare earth minerals, thereby lifting risk assets, including US stocks and Bitcoin.

The surge in Bitcoin demand in the US is evident, with Coinbase Premium hitting a 4-month high. This metric, which compares the price of Bitcoin on Coinbase to other global exchanges, indicates strong buying interest from US-based investors. The high premium suggests that investors are willing to pay more to acquire Bitcoin, signaling a bullish market sentiment and potential for further upward movement. Additionally, the supply of Bitcoin on crypto exchanges recently hit a 7-year low, reducing selling pressure and contributing to the bullish outlook.

Bitcoin's recent performance has been impressive, setting a new all-time high of $111,814 last month. Currently, it stands just shy of this level at $109,238. The cryptocurrency's ability to hold key support levels, such as $106K–107K, combined with a dovish U.S. macro backdrop, could propel it to breach $112K and potentially reach the $120K zone. However, failure to secure these levels risks a broader correction, with prices potentially revisiting $100K or lower. Technical structure, on-chain strength, and institutional interest favor bulls, but macroeconomic risks and pattern risks caution against assuming victory. The $103–112K range is critical, as holding and flipping this range could open the door to new highs.

At $109,238, Bitcoin appears to be in a consolidation phase, often referred to as the "calm before the storm." This phase is necessary for Bitcoin to elevate past the $112,000 zone. The whale's 20x leverage bet suggests an expectation of a new all-time high for the leading cryptocurrency soon. As investor sentiment, particularly in the US, continues to rise, the short-term outlook for Bitcoin remains optimistic, with market participants eagerly awaiting a potential breach past $112K.