A massive Bitcoin whale short position worth $900 million shocked the crypto community. The whale, which has total assets of more than $11 billion, was an active short seller of both Bitcoin and Ethereum, according to the report. The timing reignited fears of a broader market correction after weeks of volatility. The move came amid a weak macroeconomic backdrop, with traders uncertain about Bitcoin’s next major trend. With BTC struggling to break above key support levels and ETH failing to maintain its bullish momentum, the whales’ decision could trigger a wave of liquidations if prices fall further.
🚨New: A huge $11 billion Bitcoin whale has opened a $900 million short position in $BTC and $ETH. pic.twitter.com/pUAETLIxW5
— Coin Bureau (@coinbureau) October 12, 2025
Whale activity reveals growing bearish sentiment among large holders
Large holders often set the tone of market sentiment, and we saw similar behavior with crypto whaling. Tracked blockchain data shows the activity of whales using leverage by shorting positions across multiple exchanges to reduce risk from a single platform.
Previous cycles have seen similar whale behavior before the market corrected 10-20%. The current setup looks eerily familiar, especially as funding rates turn positive and retail traders pile up longs. Many analysts interpret this as a textbook scenario where whales are on the other side of the trade.
Bitcoin struggles to maintain key levels as Ethereum follows suit
Bitcoin price volatility has increased in recent days. After being rejected at $65,000, Bitcoin is flat, leaving traders worried. A Bitcoin whale short position of this size is typically sufficient to provide a psychological barrier and prevent long attempts.
Ethereum mirrors the behavior of Bitcoin. ETH recently tested the $2,400 level but failed to maintain momentum. Sentiment in the altcoin market has also become cautious, with some of the $900 million in short bets targeting ETH. Some analysts have suggested that whales are expecting a simultaneous decline across top assets.
Analysts discuss motivations behind whales’ huge short bets
Crypto analysts are divided as to why this whale opened such a huge short position. Some believe this is a hedge against an existing long portfolio, designed to protect unrealized gains. Some see it as a bet on the direction of price declines due to upcoming macro events, such as inflation statistics or potential interest rate decisions.
One market strategist noted that whales often move ahead of news triggers and position themselves early in volatility. If so, this may not be an outright bearish conviction, but rather a tactical strategy to profit from the expected disruption.
However, traders should not underestimate the psychological impact. Whales launching a $900 million short sale would send a strong message that confidence in the near-term rally is waning, at least in the short term.
What it means for traders
This progress is a reminder that even in a bull market, whales are doing what they want. Individual traders can gain valuable data by analyzing short positions and large-scale on-chain movements of Bitcoin whales. This helps assess changes in sentiment before they manifest in price movements.
As the market digests this $900 million short bet, caution seems prudent. Traders may want to reduce leverage, better manage risk, and avoid chasing quick reversals. The next few days will likely determine whether this whale made a nice hedge or triggered the next big correction.
