Famous Bitcoin Whale buys massive short position

An anonymous trader who manages a crypto wallet worth around $11 billion and made what was arguably the biggest profit of the year in the shortest timespan some two weeks ago, has rattled markets anew.

Crypto is nervous now that he’s bought a new short, one for $235 million with a leveraged ratio of 10x. In other words, a growing number of large investors are convinced a crash is coming.

10x

Let’s take you back in time. On Friday, October 10th, about two weeks ago, an anonymous crypto trader placed a massive Bitcoin short.

About 30 minutes later, US President Donald Trump announced his intention to impose import tariffs of around 100% on China, temporarily crashing the Bitcoin price by about 15%. Bitcoin found support around $100,000 and climbed back up. The trader made a massive profit of around $80 million and closed his position shortly afterwards.

Since then, many have assumed this was some kind of insider trading, as Trump’s social media posts are drafted in advance, making it quite possible the investor knew what was going to happen.

Whatever the case, that anonymous investor, who manages a crypto wallet worth around $11 billion, has taken another position this week. It’s a truly massive short on Bitcoin of around $235 million with a leveraged position of 10x.

He bought in at $111,000 per Bitcoin, and thus if Bitcoin crashes again, this investor stands to make billions.

At the time of writing, Bitcoin is trading at $109,000 which means the anonymous investor is at this moment looking at a very nice profit.