As Bitcoin (BTC) Trades Above $104,000, Several Large Traders Have Opened High-Risk Short Positions

Leveraged bets against Bitcoin's current bullish momentum are mounting, with at least three whale traders deploying massive capital using up to 40x leverage.

As Bitcoin trades above $104,000, several large traders have initiated high-risk short positions, exposing themselves to steep liquidation threats.

Leveraged bets against Bitcoin’s current bullish momentum are mounting, with at least three whale traders deploying massive capital using up to 40x leverage. These positions are already incurring heavy unrealized losses, while ongoing funding payments offer limited compensation against market pressure.

Whale Wallet Faces Liquidation Risk at $105,700

According to a disclosure from blockchain resource Lookonchain, wallet address 0x51d9 has opened a $93 million short position on Bitcoin, deploying 40x leverage.

Many gamblers are shorting $BTC with high leverage!

0x51d9 opened a $93M short position on $BTC with 40x leverage, with a liquidation price of $105,690.

0x5D2F opened a $44M short position on $BTC with 40x leverage, with a liquidation price of $112,660.https://t.co/WcW1u4FdWz… pic.times new roman font size 12 valign middle nowrap light table-row-highlight cells-center optimistic-highlight

This position, entered at $93 million. The trade is currently in a deep unrealized loss, estimated to be over $500,000.

To offset some of the losses, the short is earning an estimated $34,000 in positive funding from the positions. However, the funding amount is relatively small compared to the current drawdown.

In addition, the same wallet placed a $1.1 million short bet on Lido DAO (LDO) using 10x leverage at an average price of $1.08162. It now has an unrealized loss of $22,379. The LDO position has more leeway, with liquidation occurring only at a price of $1.9761, or a 79% surge from current levels.

Separate $44M Short Sees $515K in Unrealized Loss

Another major Bitcoin short was placed by the wallet 0x5D2F…8Ab39Bb7. It appears to have entered a $44 million short on Bitcoin at an average price of $103,494.40 using 40x cross leverage.

This position is already in the red, showing an unrealized loss of $515,348.53 with BTC now trading at $104,720. The position is placed at a liquidation price of $112,660.

Despite the unrealized loss, the position has earned $51,711.71 in positive funding. This is an indication of the strong long interest in the broader market. However, if the upward momentum continues, these short positions may be forced to buy back at higher prices, potentially increasing volatility.

Third Whale Enters at $95,969 with 40x Exposure

A third trader was hit by liquidations after they went heavily short on Bitcoin at 40x leverage. The trader, who started their trade at an average price of $95,969 with a total position size of $69.7 million, was liquidated at around $103,470.

At the time of writing, the price of Bitcoin is at $104,088.

Massive Shorts Already Liquidated

Over the past 12 and 24 hours, Bitcoin (BTC) derivatives markets have seen significant short-side liquidations, signaling strong upward price pressure. In the 12-hour window, $66.66 million was liquidated, with $51.25 million from shorts.

Similarly, in the 24-hour period, $82.58 million in positions were wiped out, with $60.97 million from shorts, compared to just $21 million in longs.