In a move that’s stirring speculation across the crypto world, the elusive figure known as the Hyperliquid Whale has increased their short position on Bitcoin to a staggering $524 million. This massive position is the latest development in a trade that was originally valued at around $430 million, with the whale adding roughly $100 million to their bet earlier today.
According to Hypurrscan, the whale is leveraging Bitcoin with a 40X margin, using about $13 million in collateral. The trader’s average entry point stands at $83,898, with a liquidation price perilously close at $85,565—just $1,000 away from Bitcoin’s current price of approximately $84,500. Should Bitcoin’s price rise above this threshold, the whale risks losing the entire position, which is already showing a $3.9 million loss, alongside $423,000 in funding fees.
The crypto community is abuzz with theories about the whale’s motivations. Some analysts speculate that the short position may serve as a hedge against a substantial Bitcoin holding, while others believe it signals a prediction of a significant market correction due to the over-leveraged nature of current positions.
Despite the widespread skepticism surrounding the trade, a well-known analyst, Martini Guy, suggests that the whale may have hidden long positions on centralized exchanges, unseen by the public. “He knows a bunch of people will buy to try and liquidate him. I would expect he has a much larger long position on exchanges that you can’t see. Whales aren’t dumb,” he commented.
With Bitcoin experiencing increased volatility, the whale’s $524 million short position could amplify market pressure, especially if the cryptocurrency sees a sudden spike before the U.S. market closes, potentially triggering liquidations. What the Hyperliquid Whale knows and why they are making this move remains a topic of intense debate.
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