A major crypto whale – identified by Arkham Intelligence as the “0x52D” wallet cluster, which manages over $11 billion in digital assets – has initiated a $900 million short position split between Bitcoin and Ethereum, in one of the largest coordinated bearish moves of the year.
According to blockchain analytics data, the entity opened a $600 million short on Bitcoin with 8× leverage and a $330 million short on Ethereum at 12× leverage through offshore exchanges Binance, OKX, and Bybit. The positions were placed in rapid succession late Sunday, triggering a sharp uptick in open interest and derivatives volume.
Liquidation levels are estimated around $114,000 for Bitcoin and $3,950 for Ethereum, suggesting the whale expects a near-term pullback below $108,000 and $3,600, respectively.
Arkham and Lookonchain data confirm that collateral for the trades originated from wallets previously associated with early 2021 Bitcoin accumulation and 2023 Ethereum rotation — signaling a sophisticated institutional-style strategy rather than retail speculation.
Strategic Reversal and Market Timing
The move marks a stark reversal for the same whale wallet that reportedly shifted $5.1 billion in holdings from Bitcoin to Ethereum earlier this year, helping drive ETH’s mid-2025 rally. Now, by taking heavily leveraged short exposure, the trader appears to be betting that crypto’s recent surge is running out of steam amid broader macro uncertainty.
Analysts note that extreme leverage magnifies both upside and downside risk. If Bitcoin were to rise just 4% from current levels, the whale’s BTC short could face forced liquidation. Conversely, if markets decline as expected, the position could yield profits exceeding $250 million within days.
Exchange data shows retail traders are similarly cautious: 52% of Bitcoin and 51% of Ethereum positions are currently short across major platforms, according to Coinglass. This near-even distribution increases the risk of rapid volatility swings as liquidations cascade in either direction.
Implications for the Market
The short plays arrive amid a fragile macro backdrop. Risk assets have wobbled following President Trump’s proposed 100% tariff on Chinese imports, which triggered a wave of liquidations across crypto markets last week. The broader digital asset market has already lost over $350 billion in value since early October, as leveraged traders unwind risk exposure.
If Bitcoin and Ethereum prices fall below current support levels, the whale’s short thesis could be validated – potentially signaling a wider correction across the sector. But if momentum reverses, a short squeeze could amplify gains just as violently, forcing large players to cover positions.
Observers are now watching closely as funding rates remain deeply negative and open interest remains elevated. The scale of this whale’s bet — representing nearly 8% of all open BTC perpetual positions on Binance – underscores how single entities can shift sentiment and liquidity across the crypto landscape overnight.
As previously covered, large leveraged traders have become de facto market makers in digital assets. This $900 million short attack may serve as another reminder that in crypto’s highly reflexive ecosystem, conviction trades by whales can shape – and sometimes break – the trend itself.
