A Bitcoin veteran with ties to the Trump administration has just made a $234 million bearish bet on the world's leading cryptocurrency. This spectacular short position is currently shaking up the crypto markets, prompting traders to rethink their strategies.
The trader known under the pseudonym “Crypto Bear” has opened a massive short position on Bitcoin, establishing a new personal record. This influential figure in the crypto sector had previously profited from trade tensions between the United States and China during the Trump administration, strengthening his credibility within the community.
The size of this position indicates a deep bearish conviction. With $234 million at stake, Crypto Bear isn’t betting on a simple technical correction. He likely anticipates a significant drop in BTC’s price in the weeks or months ahead.
This strategy contradicts the general market sentiment, where many analysts are still counting on a bullish trend. The timing of this short comes amid increased volatility and persistent macroeconomic uncertainty.
On-chain data shows continuous accumulation by Bitcoin whales, creating a striking contrast with Crypto Bear’s positioning. This divergence between large long-term holders and speculative traders could create tensions in the spot market.
The psychological impact of this bet extends beyond the amount involved. Crypto Bear has a history of winning trades that gives him considerable influence over market sentiment. His reputation attracts the attention of other institutional traders who might follow his example.
The liquidation levels on centralized exchanges already show increasing fragility. If Bitcoin breaks certain key support levels, a cascade of forced liquidations could amplify the downward movement. Long positions with leverage greater than 10x are particularly exposed in this scenario.
Technical indicators confirm a certain caution. The weekly RSI displays signs of bearish divergence, while trading volumes are gradually decreasing during rebound attempts. These signals strengthen the thesis of a potential short-term correction.
The funding rate for perpetual contracts remains positive but shows a notable compression. This situation suggests that long traders are beginning to reduce their positions or secure their profits, creating an imbalance that could favor sellers.
Faced with this giant bearish position, institutional traders are adjusting their risk management. Bitcoin put options with strikes between $80,000 and $75,000 have recorded a notable increase in volume. This downside hedging reflects the growing concern in the market.
Crypto market makers are closely monitoring liquidity levels around major support zones. Significant selling pressure could create price gaps and exacerbate volatility. Retail traders should anticipate sharp movements in both directions.
Bitcoin’s recent history shows that massive bets by influential traders can catalyze market movements, even if they don’t determine the final trend. The question remains whether Crypto Bear has correctly identified the local top or if he’ll have to cover his position at a loss facing a new bullish leg.
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