A major crypto whale made over $160 million by shorting Bitcoin and Ethereum ahead of President Trump's tariff announcement, causing a significant sell‑off.
This event underscores the impact of geopolitical news on crypto markets, leading to substantial liquidations and heightened market volatility.
A major crypto whale generated a $160 million profit by shorting Bitcoin and Ethereum. The trading occurred before President Trump's tariff announcement caused significant market turmoil, showcasing the whale's astute market timing and influencing crypto asset values within hours.
This event involved a long‑time BTC holder and trader known for large‑scale trade executions. More than $1.1 billion in shorts were opened on Bitcoin and Ethereum, as reflected by on‑chain analytics and public trading platforms.
Market Impact
As a result, Bitcoin and Ethereum prices fell by around 12‑12.5 %. Other cryptocurrencies, such as Solana and Dogecoin, also saw notable drops, likely triggered by cascading liquidations due to the whale's significant trades. The incident prompted over $17 billion in leveraged position losses, marking one of the largest crypto liquidation events. It did not receive an immediate response from regulators but caught the crypto community's attention globally.
"And this was just publicly on Hyperliquid imagine what he did on CEXs or elsewhere. I’m pretty sure this guy played a huge role in what happened today." – MLM, On‑Chain Analyst, Source
Geopolitical Implications
This event highlighted the vulnerability of crypto markets to geopolitical news. The scale of the short positions opened and profits realized underscored speculative trading impacts, drawing parallels to past sell‑offs driven by geopolitical tensions. Insights suggest potential shifts in trading practices and regulatory focus due to this event. Historical trends illustrate similar market reactions during macroeconomic shocks, emphasizing the importance of risk management and market oversight.