Bitcoin’s $104,000 Surge Triggers High-Risk Short Selling Strategies

Bitcoin has surpassed $104,000 on Monday, prompting some significant traders to initiate opposing bets. Several high-value short positions are now dangerously close to liquidation. These trades have minimal error margins and illustrate the high stakes associated with substantial margin trading when price trends remain favorable.

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Vulnerable Short Position

As reported by blockchain analysis platform Lookonchain, one major account initiated a $93 million short position with a 40× margin. Currently, with Bitcoin priced around $104,000, a mere 1.5% increase would trigger a liquidation near $105,700, showcasing the precariousness of the situation. At present, this position bears over $500,000 in unrealized losses while incurring approximately $34,000 in funding fees, which are insignificant compared to the loss.

Many traders are shorting BTC with high leverage!

0x51d9 opened a $93M short position on BTC with 40x leverage, facing liquidation at $105,690.

0x5D2F opened a $44M short position on BTC with 40x leverage, with a liquidation price of $112,660.

— Lookonchain (@lookonchain) May 12, 2025

Second Large Whale in Danger

Another account executed a $44 million short at $103,494.40, utilizing a 40× margin. As Bitcoin is trading around $104,720, this trade has incurred a loss of approximately $515,348.53. Its liquidation price is set significantly higher, near $112,660, offering a buffer of nearly $9,000 before liquidation occurs.

So far, this trader has benefited from approximately $51,711.71 in favorable funding payments. This indicates that traders are still anticipating overall price increases. However, if Bitcoin continues its upward trajectory, that safety net could vanish rapidly.

Unsuccessful Position Already Closed

A third whale experienced a quick failure. This trader shorted $69.7 million in Bitcoin at $95,969 using 40× margin. Their liquidation threshold was set at $103,470, which was surpassed as Bitcoin rose past $104,000 days ago. Reports suggest that this position has likely been liquidated already, highlighting how swiftly high-risk shorts can backfire as prices surge.

Liquidations Reflect Market Challenges

In the last 12 hours, Bitcoin derivatives witnessed $66.66 million in liquidations, with $51.25 million attributed to short positions. Over a 24-hour period, the total liquidated amount reached $82.58 million, of which $60.97 million involved shorts. Positions taken long amounted to $21 million in liquidations. These stats underscore the significant buying pressure that has been pushed back into the market, driving further price increases.

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This whirlwind illustrates how rapidly betting against Bitcoin’s ascent can lead to substantial losses. Minor funding credits will not compensate for large losses if the price continues to rise. Traders with significant short positions now confront formidable challenges to avoid getting squeezed. As Bitcoin remains above $104,000, any further upticks could prompt additional shorts to close positions, potentially leading to increased market volatility in the coming days.

Featured image from a stock photo site, chart from TradingView