A mysterious crypto investor who first drew attention in August for holding an estimated $11 billion in Bitcoin has returned - this time betting heavily against the market.
According to Onchain Lens, the whale opened nearly $900 million in leveraged short positions split between Bitcoin (BTC) and Ethereum (ETH), suggesting that the trader expects a sharp correction after months of bullish momentum.
A Massive Short Gamble
The positions include roughly $600 million in 8x leveraged Bitcoin shorts and another $330 million in 12x Ether shorts, with liquidation prices at $133,760 and $4,613 respectively. Blockchain data shared by Lookonchain shows the Ether trade already showing $2.6 million in unrealized profit.
The whale had previously shifted $5 billion from BTC into ETH earlier this year, helping spark one of the largest Ethereum accumulation waves on record. The latest move, however, marks a clear change in strategy – from accumulation to speculation on downside risk.
Market Turns Red After Tariff Shock
Just as the whale’s shorts went live, the broader market started slipping. Bitcoin fell to around $119,000 after U.S. President Donald Trump signaled plans for “extreme new tariffs” on Chinese imports, reigniting global risk aversion.
Analysts say the timing of the whale’s positions – paired with the macro jitters – may accelerate a short-term correction.
Retail Traders Add to Pressure
Blockchain data from CryptoQuant indicates that smaller wallets – so-called “shrimp” and “crab” addresses – have been steadily offloading holdings, adding to selling pressure. Together, these smaller investors sold more than 6,000 BTC in the last week, while the majority of exchange traders have turned bearish: 52% of Bitcoin and 51% of Ethereum traders are now short, according to CoinAnk.
Whether the whale is anticipating a broader macro downturn or front-running retail panic remains unclear, but with leveraged shorts now totaling almost a billion dollars, the market will be watching closely.
