A significant Bitcoin whale has substantially bolstered its bet against the premier cryptocurrency, escalating market concerns about potential downward pressure.
The entity added $26 million to an existing leveraged short position targeting BTC. This high-risk position utilizes 40x leverage, meaning the borrowed funds amplify both potential gains and losses relative to the initial capital.
Following this strategic move, the whale’s total outstanding Bitcoin short position has officially reached $118 million. Analysts view this substantial increase as a strong indicator that this large investor anticipates a significant dip in Bitcoin’s price in the near term.
The sheer size and leveraged nature of the position place it under intense market scrutiny, often serving as a potential precursor to increased volatility as traders assess the whale’s conviction and potential market impact.