A Satoshi-era Bitcoin whale, known as the "Trump Insider Whale," initiated significant short positions before Trump’s unexpected tariff announcement. The whale holds vast assets, having acquired 86,000 BTC in 2011 and engages in high-visibility trades. Crypto researcher Maartunn noted, "This Bitcoin O.G. 👇 Held 86K BTC from the Satoshi-era (2011)... Satoshi-era OG have insider ties to the U.S."
The actions involved over $1.1 billion shorted against BTC and ETH on the Hyperliquid exchange. Allegations of insider trading surfaced, although no direct statements or identities have been revealed, leaving murmurs and denials across crypto communities. Insights into the crypto market can be explored through the lens of Crypto market insights and analysis from Hayes.
Crypto Market Wipes Out $1 Trillion in Volatility
The crypto market cap experienced a substantial drop, erasing over $1 trillion in value. Notably, BTC and ETH saw sharp declines following these trades with BTC dropping below $102,000 within hours. Global liquidations amounted to over $19 billion, with most affected positions being long. Analysts noted the similarities between this event and past macroeconomic news, suggesting potential unregulated market risks. The implications resonate with Janis Kluge's insight, "Crypto people are realising today what it means to have unregulated markets — insider trading, corruption, crime, and zero accountability."
Market Turmoil Echoes Historical Events like Mt. Gox
Comparable large-scale shorts have followed major macro news, such as the Mt. Gox sales or Terra/Luna collapse. The scale, timing, and secrecy associated with this event present rarely seen parallels with previous occurrences. Experts emphasize the systemic risks and the potential for wider regulatory scrutiny. Without official statements from legal channels, it remains an area of high speculation within the crypto space, highlighting the need for systemic reassessment.