An early Bitcoin whale recently made a significant move in the cryptocurrency market, shorting over $1.1 billion against BTC and ETH just before President Donald Trump’s announcement of 100% tariffs on Chinese imports. This strategic move resulted in an estimated $27 million in unrealized profits as the market experienced a sharp decline.
Identified as a “Bitcoin OG” and holding 86,000 BTC since 2011, the trader deposited funds into Hyperliquid to establish leveraged bets against the top two crypto assets. The whale’s short positions on BTC and ETH have now generated substantial profits amidst market volatility, sparking speculation about possible insider information.
The trader’s leveraged shorts included significant amounts of BTC and ETH, strategically timed just before Trump’s tariff announcement. With a liquidation price set, the trader doubled down on positions shortly before the market turmoil, leading to substantial gains as Bitcoin’s price plummeted.
On-chain data reveals that the whale began accumulating short positions days before the market crash, depositing tens of millions into Hyperliquid. The subsequent market collapse resulted in over $19 billion in liquidations within 24 hours, with significant losses for both long and short positions across various cryptocurrencies.
Despite the market turmoil, the whale’s trading history, starting from the Satoshi era, has fueled conspiracy theories and suspicions of potential government ties. The whale’s strategic moves before the crash, including selling BTC for stablecoins and opening massive short positions, have raised questions about possible insider knowledge.
Social media erupted with accusations of market manipulation, with analysts considering the whale’s trades as one of the most significant insider moves in history. Critics highlighted the precision of the trader’s actions, from increasing positions before Trump’s speech to exiting at market bottoms, suggesting a coordinated effort.
President Trump’s tariff announcement triggered a historic deleveraging event in the crypto market, leading to a sharp decline in market capitalization. Bitcoin, Ethereum, and other major altcoins experienced significant losses, erasing gains made in recent months and resulting in billions in locked-in losses for traders.
Despite the profitable exits of the whale, the crash left over 1.66 million traders liquidated and caused a significant drop in the global crypto market cap. The event was deemed one of the year’s most severe liquidation episodes, with billions in market value wiped out within hours.
As market participants navigate the aftermath of the crash and speculate on the whale’s actions, the cryptocurrency market continues to exhibit volatility and susceptibility to external factors, highlighting the need for caution and strategic decision-making in trading.
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