A Bitcoin whale’s $449 million leveraged short position on Hyperliquid has intensified market tensions as traders brace for potential volatility. The whale, utilizing 40x leverage, initially opened the position at $84,043 per Bitcoin, sparking a coordinated effort among retail traders to push prices toward the $86,088 liquidation threshold. Despite rising funding costs exceeding $200,000, the position remains in profit by $2.7 million as Bitcoin struggles to reclaim $85,000. Analysts highlight the growing divergence in market sentiment, with whale options activity signaling cautious institutional assessments of near-term risks.
Community-led attempts to liquidate the whale’s position briefly rallied prices to $83,700, but momentum stalled due to limited buying pressure. The whale has since adjusted strategies, closing partial shorts and reopening positions to suppress prices while placing $8.88 million in sell orders near $83,484. On-chain data reveals whales now hold approximately 50% of Bitcoin’s circulating supply, with strategic accumulation and distribution patterns historically preceding volatility. CryptoQuant analysts note a recent decline in whale selling pressure on Binance, a trend that has previously correlated with price recoveries.
Bitcoin’s price hovers near $83,000, down 0.95% over the past 24 hours, as trading volume surged 46.73% to $37.46 billion. Market participants remain divided, with some interpreting the whale’s maneuvers as hedging ahead of the Federal Reserve’s policy decision, while others warn of concentrated downside risks. The whale’s additional 3x leveraged long position on Hyperliquid’s native token, HYPE, underscores the high-risk strategies prevalent on derivatives platforms.
Industry experts emphasize the growing influence of leveraged whale activity, with previous instances of 50x leveraged Ethereum shorts generating $68 million profits during market dips. As Bitcoin faces resistance at $84,100, traders await clarity from macroeconomic developments, including global trade policy shifts and interest rate trajectories. The whale’s ability to sustain this position could prolong sideways trading, testing key support levels near $81,000.
Sources:
https://www.mitrade.com/insights/news/live-news/article-3-701754-20250317
https://coincu.com/327634-bitcoin-options-whale-trades-tensions/
https://www.indexbox.io/blog/bitcoin-whales-massive-short-position-amid-market-uncertainty/
https://www.investing.com/news/cryptocurrency-news/mystery-whale-with-400-million-btc-short-makes-unexpected-move-details-3932895
