Bitcoin Updates: BitcoinOG's Setback Underscores the Dangers of Trading Crypto with Leverage

A well-known

whale, referred to as "BitcoinOG," who gained recognition for successfully shorting the October 11 market drop and securing profits exceeding $197 million, as reported by , has recently suffered a $3 million setback on a long trade, according to . This shift follows a period in which the trader, who has transferred $1.48 billion in to platforms such as Kraken, Binance, and Hyperliquid since October 1, has been contending with a turbulent market characterized by profit-taking and a resurgence of bearish attitudes.

Another experienced whale, Owen Gunden, has echoed BitcoinOG’s moves by sending $364.5 million in BTC to Kraken between October 21 and November 3, according to Yahoo. These significant transfers, together with broader market trends, have fueled speculation about increased selling pressure and the likelihood of a market correction. CoinGlass data shows that $260 million in long positions were liquidated in just four hours as Bitcoin’s price dropped to $115,000, highlighting the growing uncertainty,

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BitcoinOG has recently shifted from shorting to taking long positions, now holding 32,802 ETH (valued at $109 million) and 130,566

(worth $21,000), according to BeInCrypto. However, these investments are currently showing a combined unrealized loss of $3.5 million, the outlet noted, emphasizing the dangers of leveraged trading in a highly volatile market. At the same time, BitcoinOG has also allocated $20 million in to increase exposure to BTC and ETH, indicating a more cautious approach.

Market instability has been intensified by what CryptoQuant identifies as the third major profit-taking phase in the 2023–2025 bull run, CoinDesk reported. This phase, which has seen $6–8 billion in realized profits, has historically been followed by two to four months of market consolidation. Recent blockchain data, such as an OG whale selling 80,000 BTC on July 25, mirrors trends seen in earlier cycles.

Further adding to the market’s unpredictability, geopolitical issues—including tariff increases from the Trump administration—have reduced risk appetite, according to CoinDesk. The Coinbase premium, which measures demand from U.S. investors, has recently dipped below zero, suggesting declining interest in Bitcoin among American buyers, the report stated.

Experts warn that while large whale deposits often precede periods of volatility, they do not necessarily signal immediate selling. The next direction for the market will likely be shaped by the interaction of profit-taking, short-term investor activity, and broader economic conditions. As BitcoinOG and other veteran traders navigate these challenges, the crypto derivatives market continues to present significant risks and opportunities for both experienced and retail participants.