Whale Boosts Bitcoin Short to $340M Amid Major Liquidations
Arkham Intelligence reports that a whale trader known as the “Trump Insider Whale” has increased its Bitcoin short position to $340 million, marking a significant extension of its bearish stance. Before the October 10 market crash, the whale profited approximately $200 million by shorting $700 million in BTC and $350 million in ETH. Following the crash, it deposited $40 million in USDC on Hyperliquid to initiate an additional $127 million Bitcoin short, bringing total active BTC shorts near $340 million. This move coincided with a $624.4 million market-wide liquidation that wiped out 213,000 traders, predominantly long positions in Bitcoin ($126 million) and Ethereum ($108 million). The whale’s timely short-selling, which has historically capitalized on major events like Trump tariff announcements, underscores growing bearish sentiment and heightened crypto market volatility. Traders should monitor potential regulatory scrutiny over insider trading practices.
Bearish
The whale’s aggressive increase in Bitcoin shorts—from $700 million pre-crash bets to a current $340 million position—signals strong bearish conviction that can apply downward pressure on BTC prices in the near term. Coupled with a recent $624 million market liquidation that disproportionately hit long positions, this move amplifies volatility and may trigger further sell-offs. In the short term, traders might expect continued downward momentum as the whale’s actions influence market sentiment. Over the longer term, heightened regulatory scrutiny and the whale’s track record of profiting from timed events could introduce additional uncertainty. Overall, the substantial expansion of short positions points to a predominantly negative bias for Bitcoin’s price trajectory.