$100 Million Whale Dumps Ethereum Short, Goes 20x Long on Bitcoin

▲ Ethereum (ETH), cryptocurrency whale/ChatGPT generated image

A whale that closed a $100 million Ethereum short position immediately switched to a 20x leveraged Bitcoin long position, sharply shifting the market's short-term directional bet from an Ethereum decline to a Bitcoin rise.

According to cryptocurrency specialized media Bitcoin.com on May 26 (local time), an anonymous high-leverage on-chain trader liquidated an Ethereum (ETH) short position exceeding $100 million that day, incurring a $260,000 loss. Subsequently, the same wallet opened a Bitcoin (BTC) long position with 20x leverage.

The size of this Bitcoin long position was recorded as 175.04 BTC, equivalent to $13.43 million. The entry price was $76,662, making it a high-risk bet that could be liquidated if Bitcoin moves approximately 5% in the opposite direction of the position. Bitcoin.com evaluated this shift as a move that places more weight on the possibility of a short-term Bitcoin rise than on the possibility of further Ethereum decline.

This trade garnered market attention not only for its size but also for the speed of the directional change. The $260,000 loss incurred on a $100 million position represents only a 0.26% loss, suggesting that the short position was closed at a level close to its entry price. Bitcoin.com reported that the same whale appears to have abandoned its bearish bet on Ethereum and chosen Bitcoin as a better means for short-term profit.

This bet comes amidst ongoing position readjustments across the cryptocurrency market. Bitcoin spot ETFs recorded $1.26 billion in outflows from May 18 to May 22, yet Bitcoin held above $76,000. Bitcoin.com explained that despite institutional selling pressure, bullish sentiment for the long-term outlook remains.

Michael Saylor, Chairman of Strategy, predicted that Bitcoin could exceed $1 million by the end of the year, while Arthur Hayes of Maelstrom anticipated it reaching $125,000 during the same period. However, this 20x long position is entirely dependent on short-term price movements, and if Bitcoin moves more than 5% in either direction, the success or failure of this whale's bet could be quickly determined.

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