Bitcoin Whale Bets Big Again

A massive bitcoin investor, often called a “bitcoin whale” due to the enormous size of his holdings, has once again entered the spotlight. This wealthy trader, who reportedly controls about $11 billion worth of bitcoin, has reopened a huge short position worth $235 million, signaling his belief that the bitcoin market might continue to decline.

Last week, the same bitcoin whale earned nearly $200 million in profits when the crypto market suffered a sharp downturn. Instead of resting on his success, he seems convinced that more turbulence lies ahead for bitcoin and other digital assets.

According to blockchain data, this investor opened a leveraged short position on bitcoin with ten times leverage, essentially betting that the value of bitcoin would fall further. The trade was placed when bitcoin was valued around $111,190. At present, the investor is experiencing an unrealized loss of about $2.6 million. His position would be liquidated if bitcoin rises above $112,368 — a level closely watched by other traders.

This move came shortly after his recent profit spree, showing a consistent pattern: shorting bitcoin when the market overheats. In trading, leverage allows investors to control a much larger position by borrowing funds. While it increases potential profits, it can also multiply risks, especially in volatile assets like bitcoin. Many traders have been wiped out when prices suddenly rise against their short positions.

Reports indicate that this whale, known under wallet address “0xb317,” has transferred over $540 million worth of bitcoin to new addresses, including about $220 million sent to Coinbase exchange accounts. Blockchain analytics platform Arkham noted that the same investor recently moved $30 million to another platform, Hyperliquid, to continue shorting bitcoin.

Interestingly, this same bitcoin whale gained attention two months ago when he converted nearly $5 billion worth of bitcoin into Ether, temporarily surpassing even some large corporate treasury holders. Analysts say this whale’s actions often cause ripples across the crypto industry, as many smaller traders tend to follow his moves in hopes of predicting the next bitcoin trend.

Market analysts have pointed out that several long-term bitcoin holders, who had remained inactive for months, began selling large amounts of their bitcoin during August. This wave of selling added pressure to the market and limited the upward movement of bitcoin prices.

Meanwhile, newer bitcoin investors have been facing massive unrealized losses, exceeding $6.95 billion in total, after bitcoin fell below $113,000. According to CryptoQuant, bitcoin is now trading below its average cost basis of roughly $113,000 — a situation not seen since late 2023. Despite this bearish environment, some analysts interpret the drop to around $104,000 as a “healthy correction” that flushed out excessive leverage and speculation from the market.

Blockchain research firm Glassnode added that short-term holders are now increasing their share of the total bitcoin supply, while speculative capital is once again rising. Many investors are watching closely to see whether bitcoin can stabilize or if another round of liquidation will push prices even lower.

In the midst of uncertainty, one thing remains clear: large bitcoin whales like this one continue to play a powerful role in shaping the direction of the crypto market, where every move can send shockwaves across the global trading landscape.