A cryptocurrency trader has made headlines by opening a massive $55.65 million Bitcoin (BTC) short position with 40x leverage, just days after losing approximately $3.03 million on two previous BTC short trades. The move was reported by on-chain analytics account @OnchainLens
The trader’s latest position comes as Bitcoin continues to flirt with all-time highs, recently rebounding from late-weekend weakness to close the weekly candle on May 25 near record levels, with analysts eyeing a potential push toward $155,000. Despite this upward pressure, the trader’s decision to short BTC at such a high leverage suggests a strong belief that the market is due for a correction, possibly targeting liquidity clusters below $100,000, as noted by some analysts.
Market sentiment is mixed. Some view the trader’s persistence as a sign of conviction, betting against what they perceive as an overheated market driven by retail FOMO and institutional maneuvering. Others warn that shorting Bitcoin at its current trajectory—fueled by easing US-China trade tensions and increasing M2 money supply—could lead to further liquidations, especially given the $298 million in leveraged position wipeouts when BTC approached $100,000 earlier this month.
“This whale’s either a genius or about to get rekt again,” commented one X user, echoing the polarized sentiment. Posts on X highlight the trader’s high-stakes gamble, with some questioning whether they can recover their losses in a market where Bitcoin’s bull trend remains “undeniable.”
Disclaimer: Trading cryptocurrencies involves significant risks. Always conduct thorough research and seek professional advice before making investment decisions.
