Bitcoin's attempt to break above $65,000 was rejected this week, and the price has since fallen below $63,000. The move comes as an unknown trader, identified by wallet address starting with 0xff84, increased their short position to 2,000 BTC — worth roughly $125.37 million. On-chain analytics firm Lookonchain now describes this trader as the 'largest on-chain BTC bear.'
The $125 million short
The trader's short position is currently sitting on an unrealized profit of about $1.79 million at prevailing prices. That's a relatively modest gain for a position of this size, but the trade is still very much alive. The liquidation price for the short is set at $63,528.92, meaning a bounce above that level would force the position to close at a loss.
For now, the bearish bet is working. Bitcoin lost the $63,000 support level despite positive CPI and PPI data earlier in the week. The macro numbers were supposed to be a tailwind, but the market shrugged them off.
Why the rally stalled
CryptoQuant analysts point to three specific factors behind the failed breakout. The Coinbase Premium has been negative for three months, a sign that US-based buyers aren't stepping in with the same urgency they once did. Spot Bitcoin ETF inflows have also weakened, and spot trading volume across centralized exchanges remains insufficient to push prices higher.
In plain terms: the buying pressure just isn't there. Even with good inflation data, the market couldn't sustain a move above $65,000, and the rejection opened the door for sellers to take control.
The liquidation level to watch
The key number to track in the coming sessions is $63,528.92. That's the price at which the whale's short position gets liquidated. If Bitcoin reclaims that level, the forced buyback could add fuel to a short squeeze. If it doesn't, the path lower stays open.
For a market that's been starved of momentum, the next few days will tell whether this bearish bet pays off or gets squeezed out.
