TLDR
- Bitcoin whale opened a $234M short on BTC after a recent price rebound.
- The trader earned $200M from shorting BTC before Trump’s tariff news.
- The short was placed on Hyperliquid with a $123K liquidation price.
- BTC fell from $122K to $104K on Oct. 10 after new China tariffs.
A prominent Bitcoin whale who gained $200 million from shorting BTC earlier this month has reportedly taken another bearish position worth $234 million. The move comes shortly after Bitcoin’s rebound from its Oct. 10 crash stalled near $114,000, raising questions among traders about renewed downside pressure amid ongoing market uncertainty.
Bitcoin Whale Opens $234 Million Short Position
According to data from blockchain analytics firm Arkham, the Bitcoin whale placed a new $234 million short position on the decentralized exchange Hyperliquid. The trade was initiated on Tuesday as Bitcoin’s price retreated from $114,000 to around $108,500.
Arkham reported that the position carries a liquidation price of $123,000, meaning that if BTC rises above this level, the short would be automatically closed by the exchange. The move indicates continued skepticism from large holders despite the broader recovery in the market following early October’s sell-off.
The trader, often referred to as a “Bitcoin OG,” had previously made substantial profits by shorting Bitcoin ahead of the Oct. 10 crash. That earlier position, worth hundreds of millions, earned approximately $200 million as BTC prices plunged.
Background: The October 10 Price Crash
Bitcoin’s sharp decline on Oct. 10 was triggered by geopolitical tensions after U.S. President Donald Trump announced an additional 100% tariff on Chinese goods, adding to existing 30% tariffs. The news prompted a sell-off across global markets, with Bitcoin falling from $122,000 to around $104,000 within hours.
China’s move to tighten restrictions on rare earth exports further pressured risk assets. The situation worsened after Binance experienced technical issues during the sell-off, which amplified market volatility and affected several tokens, including Ethena’s synthetic dollar, USDe.
According to Arkham’s data, the whale opened the earlier short position roughly 30 minutes before the tariff announcement. This precise timing fueled speculation about potential insider information, though no direct evidence has been confirmed.
Market Reaction and Current BTC Movement
Bitcoin has since recovered from its early-October lows, though price momentum has slowed. After reaching $114,000 on Tuesday, BTC retreated to about $108,500 by Wednesday morning, according to CoinDesk data. The cryptocurrency remains in a consolidation phase as traders weigh macroeconomic developments and renewed selling pressure from institutional accounts.
Some analysts suggest that large short positions could add short-term volatility if liquidations occur during price swings. However, current trading volumes show continued engagement among professional traders seeking opportunities in both directions.
Ethereum and other major cryptocurrencies also traded relatively steady over the same period. Ether held around $3,870, with minor fluctuations in daily price movement.
Growing Skepticism Amid Economic and Policy Uncertainty
Market analysts observe that institutional traders remain cautious amid shifting economic policies and trade tensions between the United States and China. The recent increase in large leveraged positions on decentralized exchanges reflects both risk appetite and uncertainty in the broader digital asset space.
The new short by the Bitcoin OG suggests that some major market participants still expect potential downside in BTC’s price. While Bitcoin has shown resilience since the early-October sell-off, sentiment remains divided as investors monitor macroeconomic conditions, regulatory developments, and geopolitical events that continue to shape global risk appetite.
As of the latest data, Bitcoin trades near $108,200, maintaining stability but showing limited upward momentum. The whale’s $234 million short position remains one of the largest active bearish bets currently observed in on-chain tracking.
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