Bitcoin Whale Closes Part of Short Positions with Amazing Profit

By the end of January 2025, the crypto world gained attention due to the activities of a Bitcoin whale. According to BlockBeats reports, this major market actor has adjusted their trading strategy by reducing exposure to short positions. Real-time monitoring from HyperInsight shows that the whale is shrinking its short positions while maintaining an aggressive 20x leverage on a significant amount of BTC assets.

Profiting from Bitcoin Decline

The whale’s decision to partially close its short positions has paid off well. During the position adjustment, this whale recorded a floating profit of $10.72 million from its remaining short holdings of 389.91 BTC. This figure reflects a fairly profitable strategy in capitalizing on Bitcoin price volatility.

The whale’s trading journey began when Bitcoin was still at a high of $111,499.3, where the whale opened a 20x leveraged short position with an initial amount of 499.91 BTC. Since that entry point, the short strategy has generated a cumulative profit of $9.9967 million from the funding rate mechanism before a partial close of the position was executed.

Leverage Strategy and Risk Management

Choosing a relatively aggressive 20x leverage demonstrates the whale’s confidence in the market direction. Although part of the position has been closed, the whale still maintains exposure to crypto assets with 389.91 BTC at the same leverage. This indicates that the whale remains optimistic about its short strategy amid Bitcoin market dynamics.

The funding rate mechanism also plays a crucial role in profit accumulation. This system allows traders with short positions to collect periodic fees from long traders, which in the case of this whale has proven highly profitable, with a total of $9.9967 million accumulated.

Implications of the Whale’s Movements in the Market

Bitcoin whale activity has always been an important barometer for retail and institutional traders. The reduction of short positions by this major player could indicate a shift in sentiment or profit-taking after a price rally. Currently, Bitcoin is trading around $69.39K (as of February 9, 2026), reflecting ongoing market dynamics.

Strategic moves like this from whales not only reflect individual decision-making but also send important signals about liquidity conditions and overall market structure. The reduction of large short positions by this whale could be an indication that downside pressure is beginning to ease in the Bitcoin market.