"Bitcoin Trader", After Incurring a Loss of $4.56 Million, Opens a New Short Position of 300 BTC Worth $23 Million

On August 24, a wallet (identified as bowen1476) opened its 15th short position on Bitcoin and Ether in five days—this time with 40x leverage on 300 $BTC worth approximately $23.13 million. The trader suffered losses on all 14 previous attempts during this period, with a total loss of $4.56 million.

The new short position was opened with Bitcoin priced around $77,500, which is 22% above the seven-day level, meaning the position is going against one of Bitcoin's strongest rallies since March 2023.

Furthermore, it's worth noting that this is not the first time this wallet has made headlines. In May, Bitcoin.com News reported that the same address, then on a winning streak, closed a 700 $BTC short position worth $56.68 million at a loss of $1.94 million—a single unsuccessful trade that wiped out $1.71 million in profits gained from 11 previous successful short positions.

Subsequently, in April, the trader opened a short position with 33x leverage on 200 $BTC worth $14.15 million at an average entry price of $70,745—this was his fifth short position for that month alone. On August 19, the same wallet had another short position liquidated amid accelerating Bitcoin gains, forming part of a $270 million short position wipeout.

Opening Short Positions Amid Treasury-Fueled Rally

The losses for this wallet coincided with one of Bitcoin's sharpest rallies in recent years, largely triggered by the news that the U.S. Treasury Department doubled the size of its long-term bond buyback operations from $2 billion to $4 billion per operation, which, according to Bernstein strategist Gautam Chhugani, served as a powerful trigger that pushed Bitcoin out of its six-week trading range between $60,000 and $65,000.

As a result of the "short squeeze," more than 172,000 short positions were liquidated within 24 hours, with losses on bearish bets amounting to approximately $3 billion.

President Trump further amplified this momentum by publicly urging Congress to pass the Clarity Act, which would establish clearer federal regulations for digital assets. Since then, Bitcoin has reached a seven-day high of $79,500, which is within reach of the wallet's most recent short position opening price of around $77,100.

Whether the trader's 15th attempt will break this streak largely depends on whether Bitcoin's rise continues. Data from Lookonchain shows that the wallet has not closed a profitable short position since the 700 $BTC trade in May, and each new position has been opened at increasingly higher prices as Bitcoin has risen.