Rebecca Cruz An $11 billion Bitcoin whale stirs the crypto market by opening $900 million in shorts against Bitcoin and Ethereum, signaling confidence in a near-term correction despite ongoing bullish momentum.
A powerful Bitcoin whale with an estimated $11 billion in assets has shaken the crypto landscape by placing $900 million in leveraged short positions on Bitcoin and Ethereum. The move has sparked widespread debate across the trading community, as many interpret it as a calculated bet on a short-term market pullback despite the ongoing bullish sentiment in October.
According to blockchain intelligence firm Onchain Lens, the Bitcoin whale opened a massive $600 million short on Bitcoin and another $300 million short on Ether. The timing of these trades, coming shortly after Bitcoin reached a new all-time high above $125,700, suggests that the whale is bracing for a potential correction before the next leg up.
Bitcoin Whale Targets Correction Amid Bullish Momentum
The Bitcoin whale had remained inactive for nearly two months before resurfacing this week with a $360 million Bitcoin transfer that reignited speculation among traders. The move was followed by the two high-leverage shorts, signaling that this deep-pocketed investor expects a reversal in the near term.
The short positions carry significant leverage, with the Bitcoin bet set at eight times and the Ethereum short reportedly at twelve times leverage. According to blockchain tracking data, the whale’s Ethereum short position, worth around $330 million, already showed an unrealized profit of $2.6 million when markets slightly dipped after the trades were placed.
If Bitcoin’s price climbs above $133,760, however, the whale’s Bitcoin position could be liquidated. The Ethereum short faces a similar risk if the price surpasses $4,613. Such precise liquidation levels indicate a sophisticated trading setup, possibly backed by algorithmic models or institutional-grade analysis.
Bitcoin Whale’s Trading History Raises Eyebrows
This is not the first time the Bitcoin whale has made headlines. Back in August, the same entity reportedly rotated $5 billion worth of Bitcoin holdings into Ether and helped drive a cumulative $456 million Ether purchase across nine associated wallets. That move had been interpreted as a shift toward Ethereum exposure, but this latest short positioning reveals a more complex trading strategy.
Analyst Willy Woo noted that large-scale activity from dormant Bitcoin whales was among the reasons Bitcoin’s price stalled earlier in August. Now, the same player appears to be capitalizing on short-term market cycles rather than long-term accumulation.
The whale’s latest strategy may reflect growing caution among large holders as the market enters what traders call the “Uptober” phase a historically bullish month. Despite strong inflows into spot ETFs and surging optimism, smart money appears to be hedging against possible volatility.
Broader Market Shows Signs of Short-Term Caution
Data from blockchain analytics platform CoinAnk shows that over 52 percent of Bitcoin holders across major exchanges are currently short, betting on a short-term decline. Only 47 percent remain long, indicating a modest bearish tilt in market sentiment.
A similar trend is visible in Ethereum markets, where 51 percent of traders have taken short positions. This suggests that the Bitcoin whale’s strategy might not be an isolated event but rather a reflection of broader caution within the market.
Meanwhile, smaller retail cohorts are also contributing to selling pressure. Data from CryptoQuant reveals that addresses known as “shrimp,” “crab,” and “fish” terms referring to wallets holding less than one, up to ten, and between fifty to one hundred Bitcoin respectively collectively sold thousands of BTC over the past week.
This wave of selling coincided with Bitcoin’s slight retracement from its recent all-time high. As of writing, Bitcoin trades around $121,350, maintaining a strong uptrend but showing hints of consolidation.
Bitcoin Whale Signals Confidence in Tactical Plays
The Bitcoin whale’s short exposure underscores the rising sophistication of large investors in crypto. While retail traders continue to ride the October rally, whales are using advanced leverage and timing strategies to hedge risk or profit from temporary pullbacks.
The market remains at a pivotal moment. If Bitcoin sustains its strength and surpasses the whale’s liquidation threshold, the short could backfire dramatically. However, if a correction occurs, this move could rank among the most profitable whale trades of the year.
For now, all eyes are on this Bitcoin whale as traders await the next move that could either confirm a short-term correction or trigger a wave of short liquidations that propel prices even higher.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
