Bitcoin The price plunge marks millions of dollars worth of bearish bets being placed by veteran traders.
According to blockchain analyst LookOnChain, Bitcoin “OG” leveraged shorting 3,600 BTC worth $438 million during overnight trading on decentralized exchange Hyperliquid as the spot price of BTC briefly fell below $120,000.
The liquidation price of the short trade is $139,900. In other words, the position is at risk of running out of margin and being forced to close by the exchange.
The term “OG” (Original Gangster) refers to groups that have been involved in the Bitcoin market since the early days and are often considered long-term holders.
Notably, this OG sold 3,000 BTC on the spot market earlier this week. A month ago, the company sold 35,991 BTC to diversify into Ether, the second-largest cryptocurrency by market capitalization.
Bitcoin traded at $121,700, marking a slight recovery from overnight lows, according to CoinDesk data. Although OG whales have been selling BTC, overall market sentiment remains bullish, as reflected by the positive funding rates obtained from Velo.
At the time of this writing, BTC’s annual perpetual funding rate was around 5%, which indicates a bullish bias but is not unusual.