A single Hyperliquid whale initiated a $70 million bearish position against cryptocurrencies and tech stocks on May 13, including a $12.5 million short on Bitcoin as the asset trades below $80,000. The move comes as Bitcoin's price fails to break its 200-day moving average, though macroeconomic factors may still favor the asset long-term.
A single Hyperliquid whale initiated a $70 million bearish position against cryptocurrencies and tech stocks on May 13, including a $12.5 million short on Bitcoin as the asset trades below $80,000.
According to the trading data platform Hyperdash, the address 0x8def…992dae belongs to a trader known as "Loracle," who has historically generated $42 million in profits, largely from bullish trades.
The bearish stance includes a $49 million short on HYPE, an $8 million short on synthetics tracking chipmaker Sandisk and the Nasdaq-100 Index, and the $12.5 million Bitcoin short, per app.trade.xyz data. This follows a profitable two-week period where the same trader closed $9.2 million in long positions on Bitcoin, Zcash, and Toncoin.
While the whale's short-term, algorithmic trading style suggests a technical play rather than a fundamental shift, the move coincides with Bitcoin's rejection of its $82,430 200-day moving average. A report from analytics firm CryptoQuant shows this mirrors a March 2022 pattern that preceded a major downturn. The firm also noted that unrealized profit margins for traders reached 17.7% on May 5, signaling elevated selling pressure.
The bearish sentiment is further reflected in the Coinbase Premium, which has been negative since late April, indicating declining spot demand in the United States. Last week, traders locked in the largest single-day profit-taking event since December 2025, selling 14,600 Bitcoin worth approximately $1.16 billion.
However, broader macroeconomic conditions may offer a counter-narrative. With Brent crude oil prices above $100, pressure is mounting on the US Federal Reserve to expand its balance sheet to manage spiraling Treasury yields. This liquidity injection, while easing immediate financial stress, is likely to accelerate inflation, potentially increasing the appeal of scarce assets like Bitcoin over the medium term. CryptoQuant suggests that if a correction continues, Bitcoin may find significant support near $70,000, which represents the average cost basis for short-term traders.
This article is for informational purposes only and does not constitute investment advice.
