In a recent development, a substantial cryptocurrency investor, with a portfolio near $11 billion in Bitcoin, has once again engaged in short selling of Bitcoin and Ether, anticipating their prices to decline in the near term.

After a two-month pause, the investor made a noteworthy return to trading by executing a $360 million Bitcoin transfer, which sparked interest among cryptocurrency traders, as noted by Cointelegraph.

On the subsequent day, the investor established a $600 million 8x leveraged short on Bitcoin and over $300 million in leveraged shorts on Ether. According to blockchain data from Onchain Lens, these actions indicate a bearish outlook despite the prevalent optimism surrounding the market for October.

Should Bitcoin price surpass $133,760, the trader’s short positions could be liquidated, suggesting a fragile stance in this bet against the current bullish market sentiment.

Investor’s Trading Position
Source: Onchain Lens

Moreover, they initiated a $330 million position on Ether with a 12x leverage, and at the time of writing, this positioned the investor for an unrealized profit of $2.6 million. Blockchain insights shared by Lookonchain reveal this report.

Ether Position
Source: Lookonchain

Such sizable shorts may fuel further enthusiasm among significant investors aiming to profit from a potential downturn in leading cryptocurrencies.

Earlier, in August, a total of nine significant investors acquired approximately $456 million worth of Ether, after the $11 billion Bitcoin whale converted $5 billion of Bitcoin into ETH.

As per analysts, including Willy Woo, a notable early Bitcoin adopter, large sell-offs by previously inactive Bitcoin address holders were essential factors influencing Bitcoin price movements in August.

Market Correction Driven by Smaller Sellers

Bitcoin reached a new all-time high of over $125,700 recently, before stabilizing above $121,350 according to the latest data from Cointelegraph.

Interestingly, the majority of selling pressure has not originated from top-tier investors but rather from smaller wallets. Data shows that small retail investors, such as those holding fewer than 1 Bitcoin, played a significant role in recent sell-offs.

Selling Pressure Sources
Source: CryptoQuant

In conclusion, more than 52% of Bitcoin holders across exchanges are currently positioning their trades for short-term declines, with a similar trend seen within 51% of Ether traders.