A massive crypto investor has resurfaced with nearly $900 million in leveraged short positions against Bitcoin and Ether, signaling expectations of a short-term market pullback after recent record highs.
An $11 billion Bitcoin whale has made a striking return to the market, opening $900 million in leveraged short positions against Bitcoin (BTC) and Ether (ETH). The move comes after a two-month trading pause and suggests that even large holders expect a temporary correction in the crypto market despite recent bullish momentum.
According to blockchain analytics platform Onchain Lens, the whale initiated the trades on Thursday, beginning with a $360 million Bitcoin transfer that caught investors’ attention. The following day, the same entity reportedly opened a $600 million 8x leveraged short on Bitcoin and a $300 million leveraged short on Ether, positioning for a near-term decline.
“Such aggressive short exposure reflects expectations of profit-taking and reduced liquidity after Bitcoin’s record run,” said a senior crypto derivatives analyst. “However, if BTC breaks above $133,760, the liquidation level, this thesis collapses quickly.”
Blockchain data also showed an additional $330 million 12x leveraged short on Ether, carrying a liquidation price of $4,613 and generating an unrealized profit of $2.6 million at the time of analysis, according to data shared by Lookonchain.
The whale’s strategy could trigger a ripple effect among institutional traders, encouraging others to hedge against a potential pullback. This comes after the same investor rotated $5 billion from Bitcoin into Ether in August — a move that signaled shifting capital between leading digital assets.
Meanwhile, analysts from CryptoQuant noted that recent Bitcoin selling pressure has been driven mostly by smaller wallet cohorts rather than large whales. Wallets categorized as shrimp, crab, and fish — holding under 1 BTC, up to 10 BTC, and up to 100 BTC respectively — accounted for the bulk of recent liquidations.
Currently, 52% of Bitcoin traders across major exchanges are short, with 47% remaining long, while 51% of Ether traders are also betting on a downside move, according to data from coinAnk.
As Bitcoin trades above $121,000 following its all-time high of $125,700, market sentiment remains divided — but with hundreds of millions in whale shorts now open, many traders are watching closely for a potential correction before the next leg up.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.