Whale with $42 Million Profit Bets $70 Million Short on Bitcoin...Should I Sell Now?

▲ Cryptocurrency Whale

As Bitcoin (BTC) failed to sustain its short-term upward momentum, market caution grew as a Hyperliquid whale investor established a $70 million bearish position. However, transaction data suggests that this position is more likely a trade responding to short-term technical trends rather than targeting a structural collapse across risk assets.

Cointelegraph reported on May 13 (local time) that a Hyperliquid whale, who previously accumulated $42 million in profits, recently opened bearish positions on cryptocurrencies and synthetic tokens linked to major tech stocks. The address, 0x8def…992dae, is known to be the account of Loracle, an early developer in the Hyperliquid ecosystem, and is said to have engaged in more aggressive trading since September 2025.

Most of this investor's past profits came from bullish bets, not bear markets. Over the past month, they have made profits from several long positions, and on Monday, they closed long positions in Bitcoin, Zcash (ZEC), and Toncoin (TON), generating $9.2 million in profit in two weeks. On Thursday, they held a long position in an oil-linked synthetic token for 9 days, securing $3 million in profit.

However, over the past week, this whale changed direction, building a $49 million short position on Hyperliquid. This also included a $12.5 million short position on Bitcoin and an $8 million short position on synthetic tokens linked to Sandisk and the Nasdaq 100 index. A $1.7 million long position on gold-backed stablecoins was also presented as a factor supporting a short-term defensive view on risk assets.

However, an analysis of transaction data from app.trade.xyz showed that the account exhibited patterns closer to algorithmic trading, and position holding periods were generally less than one week. This suggests that the whale's short positions may be a technical response to short-term price movements rather than a long-term bearish judgment on Bitcoin or tech stocks.

The macroeconomic environment also deviates from a simple bearish interpretation. As the war in Iran prolonged, Brent crude oil prices surpassed $100, increasing inflation and consumer spending burdens. If instability in US Treasury yields expands, there is a possibility that the US Federal Reserve (Fed) may expand its balance sheet. While liquidity provision temporarily reduces the burden on financial institutions, an analysis suggests that as the monetary base expands more clearly, the attractiveness of fixed-income assets weakens, and a favorable environment for Bitcoin, a scarce asset, could be created in the medium term.

Ultimately, the Hyperliquid whale's $70 million short bet attracted market attention as it was a move by an investor with a successful trading history. However, considering the trade structure and holding period, there is limited basis for Bitcoin investors to interpret it as a signal of a long-term trend breakdown. Cointelegraph assessed that despite the short-term bearish position, the Fed's liquidity expansion and inflationary pressures support Bitcoin's medium-term investment thesis.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*