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Bitcoin Shorts Underwater as Price Hovers Above $104K
May 12, 2025
As Bitcoin trades above $104,000, several large traders have initiated high-risk short positions, exposing themselves to steep liquidation threats. Leveraged bets against Bitcoin’s current bullish momentum are mounting, with at least three whale traders deploying massive capital using up to 40x leverage. These positions are already incurring heavy unrealized losses, while ongoing funding payments offer limited compensation against market pressure.
Whale Wallet Faces Liquidation Risk at $105,700
According to a disclosure from blockchain resource Lookonchain, wallet address 0x51d9 has opened a $93 million short position on Bitcoin, deploying 40x leverage.
Many gamblers are shorting $BTC with high leverage! 0x51d9 opened a $93M short position on $BTC with 40x leverage, with a liquidation price of $105,690. 0x5D2F opened a $44M short position on $BTC with 40x leverage, with a liquidation price of $112,660. pic.twitter.com/pAf1LEMnZp — Lookonchain (@lookonchain) May 12, 2025
With BTC hovering around $104,000, a price increase of just 1.5% would trigger liquidation. The calculated liquidation price is $105,700, leaving the position only 1.55% away from being forcibly closed. As of now, this trade is in a deep unrealized loss exceeding $500,000, suggesting the position entered before BTC pushed higher.
To offset losses, the short is earning roughly $34,000 in positive funding. However, the funding amount remains small compared to the current drawdown.
In addition, the same wallet placed a $1.1 million short bet on Lido DAO (LDO) using 10x leverage. Entry occurred at $1.08162, and the current unrealized loss is $22,379. The LDO position has more breathing space, with liquidation only occurring if the price surges 79% to $1.9761.
Separate $44M Short Sees $515K in Unrealized Loss
Another wallet, identified as 0x5D2F…8Ab39Bb7, entered a $44 million short position on Bitcoin at $103,494.40, also using 40x cross leverage. This position, already underwater, is showing an unrealized loss of $515,348.53 with BTC now trading at $104,720. The position places the liquidation price significantly higher, at $112,660, allowing roughly a $9,000 buffer before closure.
Despite the unrealized loss, the position has earned $51,711.71 in positive funding. This reflects continued dominance of long interest in the broader market. However, if upward momentum persists, short positions such as this one may be forced to buy back, increasing volatility.
Third Whale Enters at $95,969 with 40x Exposure
Elsewhere, a third trader initiated a $69.7 million Bitcoin short using 40x leverage, with an entry price of $95,969. The liquidation threshold was notably close at $103,470. With Bitcoin price at $104,088, this trader would already be liquidated.
Massive Shorts Already Liquidated
Over the past 12 and 24 hours, Bitcoin (BTC) derivatives markets have seen significant short-side liquidations, signaling strong upward price pressure. In the 12-hour window, $66.66 million was liquidated, with $51.25 million from shorts.
Bitcoin Liquidation Data
Similarly, in the 24-hour period, $82.58 million in positions were wiped out, with $60.97 million from shorts, compared to just $21 million in longs.
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