An anonymous whale got all crypto twitter’s attention over the weekend upon opening a $400 million short position on Bitcoin with 40x leverage. The bet suggests that Bitcoin is primed for a correction, but the market sees it differently, so Crypto Twitter has mobilized in an effort to push BTC past $86,000 and liquidate the whale’s position.
This isn’t just about one trade, it’s about market psychology, leverage risks, and the power of community collective retail trading. The outcome of this high-stakes gamble could send Bitcoin into a massive short squeeze above $90,000 or prove that deep-pocketed traders can still outmaneuver the crowd.
But who is behind this bet? And could it be someone linked to President Trump?
Let’s dive into the details.
Technical Breakdown of the Short Positions
Bitcoin Position
The whale placed a massive short position at $84,043 per BTC, using 40x leverage—a dangerously aggressive strategy that magnifies every price movement.
Breaking Down the Trade
- Total Position: 4,442 BTC (~$400M exposure)
- Entry Price: $84,043 per Bitcoin
- Liquidation Price: $85,592–$86,000
- Current Market Price: $82,000–$85,000
- Funding Fees Paid: Over $200,000
- Unrealized Profit/Loss: ~$2M in paper profits, but dangerously close to liquidation
If Bitcoin falls below $82,000, the whale can exit with a profit. But if BTC climbs past $86,000, the entire position is automatically liquidatedб triggering a massive buyback and likely pushing BTC even higher.
The key question remains: Why take such an extreme position in a market that’s been showing strength?
Ethereum Short
The Ethereum short position was initiated near $1,890, suggesting the trader’s bearish sentiment was not isolated to Bitcoin but extended broadly to other major digital assets, possibly anticipating a generalized market correction.
Community Reactions and Actions
In response to this high-stakes short, retail traders swiftly mobilized via social media, particularly Twitter, initiating coordinated efforts to drive Bitcoin’s price higher. This unusual collective response aimed explicitly to reach the $86,000 liquidation price, hoping to trigger a significant "short squeeze."
You son of a bitch, I'm in.
— pvp.trade (@pvp_dot_trade) March 16, 2025
Lets go hunting 🐳 https://t.co/YFErLAWlyY pic.twitter.com/9blemnChsh
Such coordinated action reveals a unique aspect of cryptocurrency markets, where community-driven initiatives can dramatically influence price dynamics. The targeted social media campaign demonstrated how decentralized market participants could organize effectively against single large traders, distinguishing crypto markets from traditional financial markets.
The community though managed to push the price slightly above $85 000 for a short time but then it went down again.
MELANIA Long Position
In a further intriguing development, the trader diversified by placing a leveraged long position on MELANIA, a meme coin officially backed by former First Lady Melania Trump. The investor committed approximately $2.5 million at an entry price of $0.69135, rapidly accruing unrealized profits surpassing $105,000. The involvement of the whale also led to a significant 6% price increase and a tripling of daily trading volume, reaching over $35 million.
The Outcome: Liquidation vs. Profit-Taking
Option 1: Liquidation and Market Volatility
Should Bitcoin reach the liquidation threshold of approximately $86,000, the forced buyback of BTC by the exchange would significantly increase market demand, potentially resulting in rapid upward price movement. A large-scale liquidation could cause cascading liquidations of other shorts, further escalating price volatility and potentially pushing Bitcoin prices to new highs.
Option 2: Strategic Exit and Market Stabilization
Conversely, if the whale proactively exits the position below the liquidation point, substantial profits could be realized. This scenario would likely maintain short-term market stability by avoiding a major liquidation event, yet it could incentivize future high-risk leveraged bets by demonstrating their potential profitability.
Who Is This Whale?
Discussions about the identity of the trader are still going on Twitter. Institutional investors or hedge funds are considered plausible candidates due to their financial capacity and strategic approach. Such entities regularly engage in complex, leveraged positions to hedge broader economic risks or to influence market sentiment strategically.
40X BTC SHORT INSIDER WHALE
— Ash Crypto (@Ashcryptoreal) March 16, 2025
IMAGE HAS BEEN REVEALED.
EXPECT NEW TARIFF TOMORROW. pic.twitter.com/FAeP5fqMNL
Social media users, particularly on Crypto Twitter, humorously speculated about possible involvement from public figures, including members of the Trump family, notably Donald Trump’s sons, known for their interests in cryptocurrency markets and meme coins.
What This Trade Means For Crypto?
This $400M short is more than just a trade. It has turned into a market-wide event, highlighting the power of social media-driven trading strategies andunpredictability of whale moves vs. retail traders.
The next move is crucial:
- If Bitcoin surpasses $86,000, the whale is liquidated, and BTC could skyrocket beyond $90K.
- If Bitcoin drops below $82,000, the whale exits in profit, and the market resets.
With macroeconomic uncertainty and institutional moves looming, this could shape Bitcoin’s trajectory for weeks.
For now, Crypto Twitter, hedge funds, and high-stakes traders are all watching one number: $86,000.
Will the whale survive or be rekt?
HODL Team
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