Bitcoin Whale Bets Big on $438 Million Short as BTC Dips Below $120K

Bitcoin’s recent price decline has drawn major attention after a veteran crypto trader—often called an “OG” in the Bitcoin community—placed a massive leveraged short worth $438 million on the decentralized exchange Hyperliquid. The position involved 3,600 BTC and was executed overnight as Bitcoin’s price briefly fell below $120,000, according to on-chain data from blockchain analyst LookOnChain.

The liquidation point for the trade sits at $139,900, meaning the position would face forced closure if Bitcoin’s price rebounds to that level. The term “OG” refers to early adopters of Bitcoin who have typically held large amounts of BTC since its inception, giving this move additional weight in the market.

This same whale reportedly sold 3,000 BTC on the spot market earlier in the week and offloaded nearly 36,000 BTC a month ago to diversify into Ethereum (ETH), signaling a possible strategic reallocation of holdings.

At the time of writing, Bitcoin was trading around $121,700—recovering slightly from its overnight low. Despite the whale’s short position, overall market sentiment remains positive. Data from crypto analytics firm Velo shows annualized funding rates for BTC perpetuals hovering near 5%, suggesting traders still maintain a bullish outlook.

The move has stirred debate among analysts. Some interpret the short as a hedge by a long-term holder seeking to protect profits, while others see it as a potential signal of incoming volatility. Nevertheless, Bitcoin continues to display resilience amid heavy whale activity and ongoing institutional interest.

With growing speculation and leveraged bets shaping market sentiment, traders and investors are keeping a close eye on Bitcoin’s next move as it consolidates near the $120,000 mark.