Why is Bitcoin Declining? Billionaire Crypto Large holder Makes a $250 Million BTC Wager (Is This the Peak for Bitcoin USD?)

What’s causing the decline of BTC? The enigmatic $11 billion whale is back and this time, he’s increasing his short position significantly.

Blockchain analytics suggest that this trader has launched a $235 million leveraged short on Bitcoin earlier this week, indicating that large investors may be preparing for another downward movement amid tariff anxieties and the continuing shutdown of the US government.

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What’s Behind Bitcoin’s Falling Prices? A Large holder Re-enters with a $235 Million Short Position

On Hypurrscan’s analysis, this position was initiated while Bitcoin traded near $111,190, leveraging 10x, potentially yielding significant profits if the BTC USD value continues to depreciate. Currently, this short position is yielding gains as Bitcoin now hovers around $108,000.

“The big investor who previously earned $200 million by shorting BTC down to $100,000 has now transferred $30 million to Hyperliquid and is shorting once more,” commented Arkham Intelligence in a post on X.

BREAKING: The insider Bitcoin big investor who profited from last week’s crash, currently holds short position of $235 million with 10x leverage. pic.twitter.com/xX8gADLB5j

— Jacob King (@JacobKinge) October 21, 2025

Only a week prior, the same wallet is said to have reaped over $200 million in profit for accurately predicting Bitcoin’s plunge to $100,000. This big investor seems to have hit the nail on the head again, with BTC seemingly trapped in a persistent downward trend.

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Big investor Movements Indicate an Institutional Strategy Behind BTC’s Mega Short

The trader, who first came to light in September, gained attention after reallocating about $5 billion worth of BTC to Ethereum (ETH). This strategic move briefly positioned the big investor as one of the largest non-corporate Ethereum holders, surpassing even the treasury exposure of Sharplink.

On the other hand, newer BTC whales are experiencing tougher times. Per CryptoQuant, these major investors are now facing $6.95 billion in unrealized losses as Bitcoin has fallen beneath its average cost basis of $113,000.

“Bitcoin is trading below its average cost basis, leading to the largest unrealized wrecked for whales since October 2023,” CryptoQuant reported on X.

Glassnode data corroborates this scenario, revealing that the token supply from short-term holders, which is generally considered more speculative, has risen, implying that traders are re-leveraging following a cleanup of overly extended long positions.

Chart Analysis: Is This Volatility or the Onset of a Major Shift?

Analysts from 99Bitcoins suggest that the current market fluctuation appears less like sheer panic and more like a necessary cleansing. We’re eliminating excess leverage, but there’s no certainty that we will emerge from this turmoil. The upcoming resistance for BTC is approximately at $112,000, marking a zone where liquidation clusters could trigger dramatic intraday fluctuations.

If this movement falters, base level may be found around $108,000 and $104,000, supported by the 200-day moving average, according to TradingView.

Whether this big investor is fortunate, astute, or simply lucky, their transactions reflect the sentiment prevailing among high-cap investors.

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The article What’s Causing Bitcoin’s Decline? Billionaire Crypto Whale Takes a Quarter-Billion Dollar Bet on BTC (Is the Peak in for BTC USD?) first appeared on 99Bitcoins.