TL;DR
- A large trader on Hyperliquid opened a 1,240 BTC short position valued at roughly $140 million, fueling speculation about a possible retracement toward $74,000.
- Analysts tracking derivatives markets suggest that whales are hedging rather than abandoning long-term optimism, citing funding data and declining open interest on competing exchanges.
- Despite talk of a technical correction, long-term holders continue to accumulate Bitcoin, and ETF inflows in the United States remain above $200 million for the week.
Bitcoin is once again the stage for speculation after an undisclosed whale entered a sizable short position on the Hyperliquid derivatives exchange. The trade involves 1,240 BTC with approximately 5x leverage, setting liquidation around $137,700. While some observers interpret this move as a sign of incoming selling pressure, others argue it reflects sophisticated risk management after months of upward movement. Additional commentary from derivatives desks indicates that similar positions have emerged on Bybit and OKX, though with smaller size and lower leverage thresholds reported by proprietary analysts.
The timing of the position follows weeks of discussion around a potential pullback from the $110,000–$115,000 range. Technical analysts tracking the rising wedge formation on the weekly chart believe a breakdown could test support zones not seen since early 2024. Still, long-term wallets show no meaningful outflows, and several custodial services report increased cold storage transfers instead of exchange deposits.
Whale Activity Raises Questions
This is not the only recent high-value short. Another address identified by Lookonchain added to an existing $500 million position with higher leverage earlier in the week. Traders are split: some warn that consecutive whale shorts often precede intensified volatility, while others suggest these trades serve as partial hedges for larger spot holdings.
Onchain data adds more nuance. Indicators like the Net Unrealized Profit/Loss (NUPL) ratio have transitioned into euphoric territory, a zone historically followed by shakeouts. Yet Bitcoin’s long-term moving averages remain upward sloping, and hash rate growth has not slowed, which usually signals confidence from miners and institutional players.
Market Perspective And Pro-Crypto Outlook
Institutional flows continue to support the broader market. Exchange-traded products in the United States and Europe have recorded steady inflows, countering the idea of an imminent collapse. Prominent analysts such as Peter Brandt acknowledge the chance of a corrective phase but do not foresee a deep multi-year decline. Some market makers also note a rise in options volume, particularly protective puts, which can signal preparation rather than outright fear.
Optimists highlight that every major cycle has included leveraged bets on both sides without disrupting long-term appreciation.
