This type of Bitcoin whale closes short positions while making big profits

On January 31st, a type of Bitcoin whale known as an aggressive short player made a strategic move by closing part of its short exposure. According to HyperInsight monitoring data, this large whale reduced its short selling position, while still maintaining a 20x leverage strategy with 389.91 BTC and a significant floating profit of $10.72 million.

Short Player Whale Quickly Manages Risk

This whale, specializing in shorting strategies, initially entered the market with a large 20x leveraged short exposure of 499.91 BTC when Bitcoin was trading at $111,499.3. This recent position reduction indicates the whale’s awareness of risk management, especially after reaching substantial profit levels. The reduction of 110 BTC from the total holdings suggests the whale is beginning to consolidate its trading strategy.

Maintaining the 20x Leverage Strategy

Interestingly, despite closing part of its position, this whale still maintains a 20x leverage with an exposure of 389.91 BTC. This shows that the whale is not fully exiting its bearish position but is rebalancing to optimize capital management. This approach reflects a more calculated strategy in facing Bitcoin market volatility.

Profit Accumulation Dynamics from Funding Rate

During the holding period, the whale has accumulated a profit of $9.9967 million through the settlement funding rate mechanism. The increase in floating profit to $10.72 million indicates that the short leverage strategy remains profitable during this period. The decision to close part of the position can be seen as a mature profit-taking strategy by an experienced Bitcoin whale who leverages derived markets.

Data from BlockBeats confirms that this Bitcoin whale’s movements reflect the dynamics of professional traders managing large exposures in futures markets, combining aggressive leverage with measured risk management.