Bitcoin (BTC) has shown remarkable stability since last Tuesday, managing to bounce back to its 200-day moving average, now hovering above $84,000 as of the weekend. However, in a surprising turn of events, a prominent cryptocurrency trader—often referred to as a ‘crypto whale’—has adopted a contrarian outlook by placing a leveraged bearish bet on BTC, amounting to millions on Hyperliquid, all while simultaneously betting on the bullish potential of the MELANIA token.
As of this moment, this whale is holding a short position in BTC perpetual futures that exceeds $445 million, which has already generated an unrealized gain of approximately $1.3 million. This position employs a significant 40x leverage, with a liquidation threshold set at $86,000, as reported by trusted data sources like Hyperliquid and Lookonchain.
The magnitude of this bearish position sent ripples through social media platform X, particularly on Sunday, when a pseudonymous trader known as CBB called for a collective effort among market participants aimed at countering the whale’s short position by rallying bullish sentiments.
Earlier today, it was reported that just hours after CBB’s initiative was announced, a rapid surge in BTC prices pushed the currency above $84,690, as noted by blockchain investigator Lookonchain on X.
In response to the volatility, the whale was compelled to deposit $5 million in USDC to enhance its margin capacity and avoid liquidation. Unfortunately for this ambitious effort, attempts to liquidate the whale ultimately proved unsuccessful, according to Findonchain’s insights.
On the other side of the portfolio, this crypto strategist is maintaining a long position in MELANIA perpetual futures with a 5x leverage, betting on a future price increase of the memecoin. MELANIA has drawn attention as it’s reportedly linked to MKT World LLC, a Florida-based company owned by Melania Trump, the spouse of former U.S. President Donald Trump.
Hyperliquid has since acknowledged the entire scenario on social media, emphasizing how the platform’s transparency regarding trading positions is revolutionizing trading dynamics in the crypto realm.
According to Hyperliquid, “When a whale shorts over $450 million in BTC and seeks an audience for their strategy, it’s a demonstration of the unique capabilities offered by Hyperliquid. When headlines characterize ‘Bitcoin Market on Edge,’ they are essentially associating ‘Hyperliquid’ with the broader market landscape. The platform ensures that anyone can confidently check a trading position like they would verify a Bitcoin balance. The future indeed looks decentralized.” Hyperliquid stated.
Notably, the platform has been under scrutiny recently after a notable whale completed a so-called ‘liquidation arbitrage,’ allowing them to extract unrealized profits. This tactical maneuver induced margin shortages and resulted in a liquidation that transferred associated risks to the decentralized exchange’s HLP vault.
This episode effectively highlights the intricate and often volatile nature of cryptocurrency trading. As market players continue to navigate this dynamic landscape, such contrasting strategies will undoubtedly influence the broader market sentiment.
