Bold Move: Trader Bets $200M Shorting Bitcoin Amid Tight Liquidation Margins

Massive Short Surge: Trader Bets $200M on Crypto Downturn

On January 20, as Bitcoin prices dipped in early trading, a well-known aggressive trader re-entered the spotlight. Chain analysis reveals they added a fresh 510 BTC short position (worth $47.3M) around 7:00 AM, pushing their total short exposure to a staggering $200 million.

Walking the Edge: High-Stakes Leverage Play

This move highlights a dangerously tight risk margin. The BTC short is now within just $1,600 of its liquidation price, while the ETH position has only a $56 buffer, indicating extreme leverage and unwavering bearish conviction.

• Bitcoin Position: 1,073 BTC short ($100M), opened at $92,469, with liquidation at $94,384. Currently facing a $280K unrealized loss.
• Ethereum Position: 31,093 ETH short ($100M), opened at $3,270, liquidation at $3,246. Riding a temporary dip, it shows a $2.49M profit so far.

While part of the portfolio remains profitable, the overall strategy is precarious. A sudden market reversal could trigger cascading liquidations. This high-wire act not only tests risk management limits but also serves as a barometer for broader market sentiment.