A prominent crypto whale, known for profiting $200 million during the recent US-China tariff-induced crypto market crash, is now making a significant bet of $55 million that Bitcoin and Ethereum will experience a resurgence.
The crypto analytics platform Arkham was among the first to identify the whale's new long positions. In an X post on Monday, Arkham revealed that these positions consist of a $37 million Bitcoin long and an $18 million Ether long on the decentralized derivatives exchange Hyperliquid.
This trader, referred to as the "Hyperunit whale," recently gained notoriety for accurately predicting the crypto market crash on October 10, which was influenced by US-China tariffs, and subsequently profiting $200 million.
HyperUnit has executed two additional profitable short positions since then. This track record has led Arkham to question whether the whale will "Get it right for the FOURTH time in a row?"
The whale has been an active participant in the market for at least seven years. They acquired $850 million worth of Bitcoin (BTC) during the 2018 bear market and held onto it until its value surged to $10 billion. This history suggests a deep understanding of market cycles and potentially indicates that their current bullish stance could be well-founded.
Bitcoin is currently trading at $106,598, while Ether is priced at $3,602. Bitcoin has seen a 15.5% decline from its all-time high, and Ether is down 27.3% from its record peak.
The Crypto Fear & Greed Index is presently situated in the "Fear" zone, scoring 42 out of 100, reflecting a cautious market sentiment.
Long-Term Holders Face Emotional Challenges
Hunter Horsley, CEO of crypto asset manager Bitwise, suggested that long-term crypto investors, often referred to as "OG whales," have significantly contributed to the recent market correction. He explained on Saturday that it can be emotionally taxing for these investors to remain in the market after achieving substantial returns, such as 100x or 1000x.
"They’ve got life to live / it can be emotionally taxing to see $100M or 1/3 of their wealth gone in a bear market, even if temporary. They plan to keep holding much / most."
Data from CryptoQuant corroborates this sentiment, indicating that long-term holders offloaded approximately 405,000 Bitcoin between early October and early November.
Despite these sell-offs, Horsley remains confident that many of the largest holders are not planning to divest their entire portfolios.
Signs Point to a Potential Market Bottom
Blockchain analytics platform Santiment has indicated that the majority of the market's downturn may have already occurred. The platform noted that there are currently 208,980 fewer BTC on cryptocurrency exchanges compared to six months ago.
"Despite Bitcoin's market value dropping 14% since its all-time high back on October 6th, an encouraging sign is the fact that BTC is generally staying off of exchanges."
"Overall, when a coin's supply is not moving to exchanges, the risk of further sell-offs are limited."
