Whale Opens 10x Short on BTC and 15x Short on ETH, Position Worth Over $50M

A large whale address has opened a 10x short on Bitcoin (BTC) and a 15x short on Ethereum (ETH), with a total position value exceeding $50 million. This move signals a bearish outlook for both major cryptocurrencies, particularly in light of recent market trends and ETF outflows.

BlackRock's Bitcoin ETF, known as IBIT, experienced a $99 million outflow on January 1, 2026. This is a notable shift from previous inflows that had supported BTC's rally in the latter part of 2025. The outflow suggests that institutional investors are adjusting their exposure in response to broader market dynamics.

Bitcoin has trailed behind gold and equities in recent months, with gold rising 9% since early November, while the S&P 500 added 1% and Bitcoin fell by 20% to around $88,000. Santiment analysts suggest that while crypto markets continue to underperform traditional assets, 2026 may offer opportunities for Bitcoin to catch up.

Why Did the Whale Open These Positions?

Large holder activity has historically influenced Bitcoin's price. Santiment data indicates that whales slowed their buying in the second half of 2025, with small wallets dominating accumulation while large wallets remained flat through October's all-time high before selling. This shift in behavior may have contributed to the bearish sentiment reflected in the whale's short positions.

The whale's 10x short on BTC and 15x short on ETH suggests a significant bet against the current price trends. Given the volatility in the crypto market, such leveraged positions carry substantial risk, particularly if prices rebound unexpectedly.

How Did the Markets React?

Bitcoin's price declined to around $88,000 in early January 2026, reflecting broader bearish sentiment. The ETF outflows and whale activity likely contributed to increased selling pressure according to blockchain analysis.

Ethereum also saw reduced inflows, with traders monitoring on-chain metrics such as realized capitalization and exchange reserves for signs of further weakness. The relative strength index (RSI) for BTC/ETH pairs showed signs of divergence, indicating potential for Ethereum to outperform Bitcoin in a bearish scenario based on market data.

The decline in BTC has drawn attention to the broader macroeconomic landscape. Institutional investors are recalibrating portfolios, particularly as interest rates and regulatory developments remain key variables for crypto adoption.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin's support levels, particularly around $60,000, where technical indicators like the 50-day moving average may provide a floor according to market analysis. If BTC holds above this level, it could signal a potential rebound in the near term.

Ethereum's performance is also under scrutiny, especially as JPMorgan and other major institutions continue to expand onchain financial products according to industry reports. The launch of tokenized money market funds on Ethereum adds new liquidity sources that may influence ETH's price trajectory.

Market sentiment is expected to remain volatile in early 2026, with traders advised to watch for further ETF flow updates and institutional positioning shifts. The recent $99 million outflow from BlackRock's Bitcoin ETF is a clear indicator of shifting capital flows.

ZOOZ Strategy Ltd., a company that transitioned to a Bitcoin-focused treasury strategy, is also part of the broader narrative. The company aims to maximize shareholder value through Bitcoin holdings, yield generation, and strategic expansion. Such developments may contribute to a more institutionalized crypto market in 2026.