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Bitcoin News Today: Massive Bitcoin Whale Short Causes $600M in Liquidations, Market Teeters on Uncertainty

Bitcoin News Today: Massive Bitcoin Whale Short Causes $600M in Liquidations, Market Teeters on Uncertainty

Bitget-RWA2025/10/27 01:16
By:Bitget-RWA

- A $11B Bitcoin whale opened a $235M 10x leveraged short at $111,190, risking $2.6M in losses if BTC hits $112,368. - Volatile 24-hour swings triggered $600M in liquidations, with Bitcoin accounting for over half the losses as large investors face $6.95B in unrealized losses. - The whale's strategy—rotating $5B into ETH and re-entering BTC shorts—signals macro caution amid tariff concerns and U.S. government shutdown risks. - Analysts remain divided: some warn of a downtrend, while others view volatility

A

whale known for frequent high-leverage short positions has entered another significant trade, intensifying anxiety among crypto derivatives traders who are already dealing with increasing losses. This investor, who manages a portfolio valued at $11 billion, has placed a $235 million short bet on Bitcoin (BTC) with 10x leverage at $111,190, . Currently, the position is down $2.6 million on paper and will be liquidated if climbs above $112,368. This move comes after a similar $200 million short in October, which yielded profits when Bitcoin dropped to $100,000, according to the same Cointelegraph report.

This whale’s activity comes amid a period of extreme swings in the crypto derivatives sector. In the last 24 hours, Bitcoin’s price has fluctuated between $107,000 and $113,000, resulting in $600 million worth of forced liquidations on major trading platforms,

. Data from CoinGlass indicates that $355 million in long positions and $301 million in shorts have been wiped out, with Bitcoin responsible for over half of these losses. The volatility has pushed derivatives trading to unprecedented highs, though Kraken’s derivatives chief, Alexia Theodorou, observed that positions have begun to stabilize after an initial panic. “The long/short ratio for Bitcoin perpetuals has returned to a more neutral level,” she commented, noting that traders are now cautiously watching for a possible recovery.

Bitcoin News Today: Massive Bitcoin Whale Short Causes $600M in Liquidations, Market Teeters on Uncertainty image 0

At the same time, overall market sentiment remains shaky. Major holders are now sitting on $6.95 billion in unrealized losses as Bitcoin trades below its average acquisition price of $113,000,

. CryptoQuant pointed out that short-term investors—typically more speculative—have increased their holdings, indicating a return to leverage following a period of reducing risk. Technical analysis also suggests a pivotal moment: Bitcoin’s 200-day moving average at $108,000 and clusters of liquidations near $112,000 could add to the volatility.

The whale’s approach reflects a cautious stance typical of large institutions. After moving $5 billion into

last September and now returning to shorting BTC, this investor is seen as a key indicator of broader market trends. “Bitcoin is currently below its average cost basis, resulting in the largest unrealized losses for whales since October 2023,” CryptoQuant shared on Twitter. The whale’s recent transfers—$30 million to Hyperliquid and $220 million to Coinbase wallets—suggest a hedging strategy amid concerns about tariffs and a potential U.S. government shutdown, as detailed by Cointelegraph.

Opinions among market experts are mixed. Alex Kuptsikevich from FxPro cautioned about a possible short-term decline, while analysts at 99Bitcoins described the recent volatility as a “cleansing” of excessive leverage, as mentioned in the Yahoo Finance article. It remains uncertain whether this signals the beginning of a prolonged downturn or just a brief correction, but the whale’s persistent trading highlights the delicate balance between institutional assurance and speculative risk.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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