Crypto Whale Profits $160 Million from Strategic Bitcoin and Ethereum Shorting

Crypto Trader Makes $160 Million from Bitcoin Crash

A crypto whale has made over $160 million in profit after correctly betting on a crash in Bitcoin and Ethereum. On October 11, the blockchain analysis platform Lookonchain reported that a long-term Bitcoin holder had invested more than $1.1 billion in short positions on the two largest cryptocurrencies by market capitalization.

The trader effectively wagered that both assets would lose value despite their recent bullish momentum. Within just 30 hours, this prediction came true as the prices of Bitcoin and Ethereum fell sharply, resulting in an estimated profit of $160 million for the trader.

“The event underscores how geopolitical shocks and whale transactions can quickly change the dynamics of the crypto market.”

After the sell-off, the trader began closing most positions, retaining only 821.6 BTC valued at approximately $92 million. This action has sparked speculation about whether the whale had early insight into upcoming macroeconomic changes that triggered the broader market decline.

Source: Yahoo Finanzen

• Trader made $160 million from short positions on Bitcoin and Ethereum.
• Market volatility was influenced by geopolitical events, including new tariffs announced by Trump.

Financial Markets Celebrate Record Highs: Is an "Everything Bubble" Looming?

The financial markets have recently celebrated record highs, with gold surpassing $4,000 per ounce, a rise of over 50% since early 2025. Bitcoin has also reached new heights, doubling in value over the past year, raising concerns about a potential "everything bubble."

Warnings of a market crash have intensified, with notable figures like Jeff Bezos and Goldman Sachs CEO David Solomon expressing concerns. The recent surge in Bitcoin, which hit nearly $126,000 on October 6, coincided with record highs in the S&P 500 and Nasdaq indices.

“We have already a multi-bubble that is likely to become even larger,” says Harald Preissler, a capital market strategist.

Despite the optimism, analysts caution against excessive enthusiasm, noting that tech companies are increasingly supporting each other, which could lead to instability. The current market dynamics resemble the dot-com bubble of the early 2000s, where many companies were overvalued.

Source: Neue Zürcher Zeitung

• Gold price has reached $4,000 per ounce, Bitcoin has doubled in value.
• Concerns about a potential market crash are growing among financial experts.

Bitcoin Rally in October: New All-Time Highs and Controversial Predictions

In October 2023, Bitcoin experienced a remarkable rally, leading investors to label the month as "Uptober." The cryptocurrency reached a new all-time high, with US Bitcoin ETFs recording net inflows of over $1.21 billion, marking the second strongest trading day in history.

Arthur Hayes, co-founder of the crypto exchange BitMEX, has proposed a controversial theory that the traditional four-year Bitcoin cycle is outdated. He argues that global monetary policy, rather than halving events, will drive Bitcoin's price movements.

“The upcoming liquidity flood could overshadow the halving narrative,” Hayes suggests.

Currently, Bitcoin is trading at approximately $121,900, and while some analysts warn of potential overexuberance, the overall sentiment remains mixed as uncertainties about the cryptocurrency's future persist.

Source: Wallstreet Online

• Bitcoin reached new all-time highs in October, with significant ETF inflows.
• Hayes challenges traditional investment strategies based on Bitcoin's halving cycle.

German Man Loses €735 Million After Forgetting Bitcoin Wallet Password

A German man, who won 7,002 Bitcoins in 2011, has lost access to his fortune worth approximately €735 million after forgetting the password to his secure USB wallet. Despite numerous attempts to recover the password, he has been unsuccessful.

Stefan Thomas, the unfortunate Bitcoin holder, initially stored his digital wallet on a highly secure USB stick but has since forgotten the password. He has exhausted eight of the ten attempts allowed to access the wallet, leaving him in a precarious situation.

“The thought of potentially owning such wealth is painful,” Thomas reflects.

While there have been claims of companies capable of cracking the USB stick, Thomas has declined their offers, having already hired two other firms for the task. As the value of Bitcoin continues to rise, his situation remains unresolved.

Source: GamePro

• Stefan Thomas lost access to 7,002 Bitcoins worth €735 million due to a forgotten password.
• Despite attempts to recover the password, he remains unable to access his funds.

Bitcoin Correction: Historical Buying Opportunity or Start of a Downtrend?

Bitcoin's price has dropped approximately seven percent within 24 hours, currently trading around $111,000. This sudden decline, accompanied by massive liquidations, is considered one of the largest in cryptocurrency history.

Historically, October has been a surprisingly stable month for Bitcoin, with significant recoveries following past corrections. Analyst Timothy Peterson notes that larger losses in October have not typically marked the beginning of prolonged downtrends.

“Major October corrections have historically been short-term overreactions that quickly corrected,” Peterson states.

As the market looks to the 20-week average at around $112,500, the upcoming days will be crucial in determining Bitcoin's trajectory. If the price remains above this level, it could signal a recovery, while a drop below may indicate further declines.

Source: FinanzNachrichten.de

• Bitcoin experienced a significant price drop, raising questions about future trends.
• Historically, October corrections have led to quick recoveries rather than prolonged downturns.

Trade War with China: Bitcoin Price Plummets

The ongoing trade war with China has led to a significant drop in Bitcoin's price. The market reacted sharply to new tariffs announced by US President Trump, causing widespread sell-offs in both traditional and crypto markets.

As geopolitical tensions rise, investors are increasingly cautious, leading to volatility in the cryptocurrency market. The recent announcements have triggered fears of further declines in Bitcoin's value, highlighting the sensitivity of the crypto market to external factors.

Source: Golem.de

• Bitcoin's price has fallen significantly due to trade tensions with China.
• Geopolitical events are impacting investor sentiment and market stability.

Sources:

• Krypto-Trader macht 160 Mio. USD dank Bitcoin-Crash
• Gold, Aktien, Bitcoin: Die Finanzmärkte feiern Rekord um Rekord – droht eine «everything bubble»?
• Bitcoin-Rallye im Oktober: Neue Allzeithochs und umstrittene Prognosen!
• Der größte Krypto-Pechvogel nach dem Mülldeponie-Typen ist ein Deutscher: 7002-facher Bitcoin-Besitzer vergisst Passwort und verliert 735 Millionen Euro
• Bitcoin-Korrektur: Historische Kaufgelegenheit oder Beginn eines Abwärtstrends?
• Handelskrieg mit China: Bitcoin-Kurs bricht massiv ein