BTC Under Pressure: $1.25B Long Flipped to Short as Price Slides

Bitcoin’s bullish momentum took a hit this weekend as the cryptocurrency slipped below $108,000, triggering a wave of caution among traders. The downturn coincides with rising geopolitical tensions, particularly new U.S. trade tariffs, which have stirred volatility across global markets — including crypto.

At the center of the latest trading shakeup is Hyperliquid trader James Wynn, who made headlines by flipping his massive $1.25 billion long position into a $110 million short. The move, flagged by blockchain research firm Lookonchain, sent ripples through the trading community, especially given the relatively illiquid conditions over the weekend.

Bitcoin (BTC) is currently trading around $107,026, retreating from its recent all-time high of $112,000. The pullback followed comments from former President Donald Trump advocating for 50% tariffs on EU goods, leading many to blame “Trump’s hot air” for triggering crypto market instability.

Despite the dip, traders remain largely unfazed. Keith Alan, co-founder of Material Indicators, pointed out that Bitcoin’s macro bullish trend remains intact as long as BTC stays above the yearly open near $93,500. “The MACRO trend line and two key moving averages still support the bull case,” Alan noted.

Others, like Crypto Tony, echoed that sentiment, suggesting that even a drop to $103,000 wouldn’t invalidate the ongoing bull market. Meanwhile, Merlijn, another trader, identified a fresh CME gap at $107,230, suggesting BTC might revisit this level before any significant move higher.

Still, Wynn’s shift from bullish to bearish is drawing attention. In a market highly sensitive to institutional moves, such a high-profile short position could signal more downside, at least in the short term.

For now, Bitcoin bulls are holding the line, but the market is clearly watching whether the $107K level will hold — or if the next stop is a support retest near $93,500.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.