Massive Bitcoin Short From ‘Insider’ Whale Sparks Fears of Market Crash 2.0
Recently, a high-profile crypto whale indicated $392 million tradeshort against Bitcoin. They used $80 million in cash to place a bet. The timing of this whale is too strange, as it is happening right after a historic surge of bitcoin by new investors. Similarly, there are emerging big political news stories that are already expected to affect the market. Investors are now urging regulators to fairly investigate whether these whales have some secret knowledge that an ordinary investor doesn’t.
Arkham Intelligence stated via Crypto Times that “This guy just shorted $420M of Bitcoin on Hyperliquid. He deposited $80M of USDC and leveraged it 6x.”
Escalating Investor Anxiety Amid Broader Crypto Market Volatility
Recently, the crypto market suffered from a 19$ billion wipeout. Many people all around the world played with their lives just because of the psychological effect they gained from their crypto investments.
This further decline can also trigger further damage to lives. People are now more inclined to invest in more secure options in trading. However, recently, Mr. Peter Schiff also warned that Bitcoin and other industries like Ethereum could sink to $75k.
Multiple sources reinforce this insider whale. The Cointelegraph reporting stated that “A large cryptocurrency investor who surfaced two months ago with about $11 billion worth of Bitcoin has opened almost $900 million in short positions against Bitcoin and Ether, signaling expectations of a market correction despite widespread optimism for October.”
Cointelegraph also stated that “On Friday, the whale opened a $600 million 8x leveraged short position on Bitcoin and a leveraged short worth over $300 million on Ether.”
Concerns Over Insider Activity and Calls for Regulatory Oversight
Gopal Solanky from Crypto Times said, “The same whale sold 3,000 BTC for $363.87 million two days ago, and now they opened a mammoth short position on the largest cryptocurrency.”
It’s raising questions regarding how they know things before others and how they can even bet such huge amounts. It means there is something hidden that needs to be explored. The trader’s behavior is also raising questions. Every time, he sets the trading shorts in response to macroeconomic events.
What Analysts and Industry Observers Are Advocating For
Ki Young Ju, who is the CEO of CryptoQuant, states, “We need more transparency in derivatives markets. Whales opening massive short positions without disclosure can trigger panic and manipulation fears.”
Similarly, the blockchain investigator ZachXBT said, “When a trader consistently profits from macro events, it raises serious questions. Regulators should be watching this closely.” Alex Kruger, a crypto analyst, further added that “This is why crypto needs circuit breakers and position disclosures. Traditional markets have them for a reason.”
