risky
Whale's 20x BTC Shorts Show High Conviction but Big Risk
I note a single whale that shorted Bitcoin four times since March 2025 is still holding a 20x leveraged short despite turning an unrealized $5.74M profit into a $12.81M unrealized loss over two months.
They have, however, collected about $4.33M from funding fees, which has partially offset paper losses. This pattern highlights high conviction but also extreme risk and exposure to squeezes when using deep leverage.
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Analysis
The position demonstrates aggressive, high-leverage bearish conviction; funding fees can mask realized income but do not eliminate large mark-to-market losses or liquidation risk. Continued holding af...
Recommendation
I recommend caution: avoid mimicking deep-leveraged shorts, monitor funding rates, open interest and whale activity, and consider hedges or waiting for clearer price structure before initiating bearis...
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.