On January 8, on-chain data revealed a major crypto whale executed a dramatic shift in strategy. The trader first closed a 136 BTC long position with 40x leverage, incurring a $22,000 loss. Minutes later, they reversed course and opened a new 80 BTC short position at the same leverage, entering at an average price of $90,997.7. The new trade is currently in modest profit.
A Signal of Changing Sentiment?
This swift pivot suggests growing skepticism among large players about Bitcoin’s ability to sustain upward momentum. Despite trading above $90K, the lack of a decisive breakout has prompted some strategic short-side positioning.
- Closed $12.4M long position
- Opened $7.26M short trade
- Both trades used 40x leverage
- Strategy flip completed within minutes
The High-Stakes Leverage Game
Using 40x leverage amplifies both risk and reward. While the short is profitable for now, a sharp rally could trigger rapid liquidations. This move underscores the volatile nature of current market dynamics — and serves as a warning against blindly following whale activity.