A trader known as the largest on-chain Bitcoin bear has expanded a short position to 2,000 BTC as the asset slides below $63,000. The position sits on an unrealized profit, but its liquidation price is less than $1,000 above the current market.
Bitcoin's breakout attempt faced another rejection at $65,000 earlier this week, and sellers have since pushed the asset south of $63,000. One trader has drawn the market's attention by continuing to grow an already outsized short position against that decline.
Largest on-chain bear keeps adding
Data from Lookonchain shows the unknown trader has increased their leveraged short to 2,000 BTC, a position analysts describe as the largest on-chain Bitcoin bear. According to the tracker: "He is now the largest on-chain $BTC bear."
The trader is currently well in the green, sitting on an unrealized profit of nearly $2 million at today's prices. Yet the position carries real risk, since its liquidation price sits just over $63,500, leaving little room between profit and a forced close.
Why Bitcoin has struggled to rally
Bitcoin has lost the $63,000 support level despite positive CPI and PPI data released earlier this week. Analysts at CryptoQuant point to several factors behind the weakness. The Coinbase Premium has stayed negative for three months. Spot Bitcoin ETFs have seen weaker inflows, and spot trading volume across centralized exchanges remains insufficient.
For now, the setup favors the bear, but a bounce back above the $63,528.92 liquidation level would wipe out the position entirely.
Source: CryptoPotato
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