Key takeaways:
- A successful Hyperliquid whale opened a $70 million short position, but data suggests this is a technical move.
- Rising oil prices and Fed liquidity injections could devalue US Treasuries, boosting Bitcoin as a scarce macro asset.
Bitcoin below $80,000 as Hyperliquid whale flips bearish on crypto
Bitcoin (BTC) failed to sustain bullish momentum on Wednesday, retreating below the psychological $80,000 level. Traders grew anxious as persistently high oil prices applied pressure to inflation and consumer spending. A Hyperliquid whale with $42 million in historical profits flipped bearish, leaving investors to question whether the recent rally is losing its foundation.
Hyperliquid whale 0x8def…992dae profit/loss, USD. Source: CoinGlass
The Hyperliquid whale at address 0x8def…992dae recently opened a $70 million bearish position on various cryptocurrencies and synthetic tokens tied to major technology stocks. According to the Hyperdash trading and data platform, the address belongs to Loracle, an early developer within the Hyperliquid ecosystem. This account began betting more aggressively in September 2025.
Related: Bitcoin price targets $79K as US PPI inflation hits highest since 2022
Interestingly, the majority of this whale’s past profits were generated through bullish bets, including several successful trades over the last month. A long position in Bitcoin, Zcash (ZEC), and Toncoin (TON) closed on Monday, netting a $9.2 million profit in just two weeks. On Thursday, the same entity secured a $3 million profit on bullish synthetic tokens linked to oil prices after a nine-day hold.
Hyperliquid whale 0x94d373…c933814 position on May 13. Source: app.trade.xyz
Over the past week, this whale flipped bearishly by accumulating a massive $49 million short position on HYPE. These bets on downside price movements expanded to include a $12.5 million short in Bitcoin, alongside $8 million in synthetic tokens tracking chipmaker Sandisk (SNDK US) and the Nasdaq-100 Index.
Why is the whale shorting BTC, HYPE, and tech stocks?
This bearish assessment is further supported by a $1.7 million long position in a gold-backed stablecoin. However, trade data analysis from app.trade.xyz reveals an algorithmic trading style, with positions typically lasting less than a week. These findings suggest the whale is reacting to short-term technical moves rather than a fundamental breakdown in risk-on assets.
Brent crude oil (left) vs. US 5-year Treasury yield (right). Source: TradingView
The ongoing war in Iran has pushed Brent crude oil prices above $100. This spike likely pushes the US Federal Reserve to expand its balance sheet as US Treasury yields spiral out of control. As US fiscal budget issues mount, investors are increasingly incentivized to seek shelter in scarce assets, especially since higher inflation expectations reduce the appeal of fixed-income investments.
US Federal Reserve total assets, USD millions. Source: St Louis Fed
The US Fed has begun accumulating bonds and mortgage-backed assets to relieve pressure on financial institutions. While providing liquidity eases immediate concerns, this intervention causes inflation to accelerate. This remedy, though efficient, curbs the potential for expansionist monetary policies, as the Fed has less room to trim interest rates effectively.
Even if Bitcoin and tech stocks initially react negatively to signs of an overheating economy, traders will likely eventually exit fixed-income investments as the expansion of the monetary base becomes evident. Lower demand for US Treasuries indicates eroding trust in monetary policy, which serves as a positive driver for Bitcoin over the medium term.
Ultimately, little reason exists to fear this Hyperliquid whale’s bearish bets, even when accounting for the entity’s successful track record.
