Key Takeaways
- A whale closed a $100M ETH short at a $260K loss on May 26, then opened a 20x BTC long.
- The BTC long covers 175.04 BTC at $76,662, with a liquidation threshold near a 5% adverse price move.
- Lookonchain data shows the reversal signals shifting conviction from ETH downside to BTC upside.
Trader Flips From ETH Short to Leveraged Bitcoin Long
A pseudonymous high- leverage trader closed a short position on ether ( ETH) worth over $100 million on May 26, recording a $260,000 loss in the process. Within hours, the same wallet opened a 20x leveraged long position on 175.04 bitcoin ( BTC), a $13.43 million bet that the market moves higher. Ether is currently trading at $2,090.55 while bitcoin sits at $76,662.
Bitcoin.com News had reported on the traderโs moves yesterday, with the latest reversal being notable for both its size and its implication as the whale appears to have concluded that etherโs downside case is exhausted and that bitcoin offers a better vehicle for near-term profits.
At 20x leverage, the position faces liquidation if bitcoin moves roughly 5% against the trade, making this an extremely high-conviction, high-risk bet. A $260,000 loss on a $100 million position represents just a 0.26% drawdown, suggesting the short was closed near its entry price rather than at a significant adverse move.
Onchain Whale Activity Highlights High-Risk Market Positioning
The trade arrives against a backdrop of broader repositioning in the crypto market with bitcoin ETFs recording $1.26 billion in outflows during the week of May 18โ22, 2026, while some alternative assets drew inflows.
Despite that institutional selling pressure, bitcoin has held above $76,000 as analysts remain broadly bullish on the assetโs long-term trajectory. Strategyโs Michael Saylor believes BTC could cross the $1 million mark by year-end, while Maelstromโs Arthur Hayes expects the currency to reach $125,000 over the same time frame.
Whether the 20x BTC long proves prescient or ends in rapid liquidation will depend entirely on near-term price action. At just over $76,600, bitcoin is trading well below its 2026 highs, and a move of 5% or more in either direction would swiftly determine the tradeโs fate.
