Gate on-chain observation ( on October 23, ): "1011 insider Whale" reduces position short order; Lubian Wallet transfers $1.83 billion BTC

After several consecutive trading days of intense Bull vs Bear Battle, the Crypto Assets market is showing important turning signals. On-chain data indicates that several market-influential Whale Addresses have begun to scale back short positions significantly. The “1011 Insider Whale” closed a short order of 2,100 BTC, realizing a profit of $6.44 million, while the “BTC OG” Whale fully closed a short position of $140 million in BTC, achieving a profit of $6.39 million. Meanwhile, institutional funds are displaying a counter-trend positioning stance, with BlackRock receiving 1,884 BTC (approximately $204.9 million) and 10,585 ETH (approximately $40.3 million) from CEX, totaling a value exceeding $450 million. Market sentiment is shifting from extremely pessimistic to cautiously optimistic.

1. BTC Market Dynamics and Analysis

Short positions collectively take profit, market sentiment turns.

The Bitcoin market shows obvious signs of short position covering, with multiple well-known whales simultaneously taking profits:

1. “1011 Insider Whale” significantly reduced its positions: the whale closed 2100 BTC short order to take profit, earning 6.44 million US dollars. Subsequently, it reduced its positions by another 829.5 BTC, currently lowering its 10x leverage BTC short order to 470.48 BTC, approximately 50.99 million US dollars, with the remaining position still showing a floating profit of 1.347 million US dollars. This operation indicates its cautious attitude towards short-term downside potential.
2. “BTC OG” Whale Perfectly Exits: This whale first closed a short order of over 100 million USD in BTC at 11 PM yesterday. Then, at around 9 AM today, at approximately 108,000 USD for Bitcoin, it fully closed its remaining short positions of 140 million USD in BTC, realizing a profit of 6.39 million USD. Its associated address opened an 18x BTC short order again at 10 PM yesterday and continued to add positions, holding a notional position value of approximately 110 million USD in BTC short positions by 3 AM today, and then took profit at a low point at 7 AM this morning, earning about 780,000 USD.

Smart money trend differentiation

At market turning points, smart money shows obvious operational divergence:

1. Abraxas Capital Bull vs Bear Battle: Two addresses marked as Abraxas Capital simultaneously increased their holdings of HYPE long orders at the price level of $38.6, with a current nominal value of approximately $7.75 million. In addition, the two addresses still hold $79.77 million in HYPE short positions, demonstrating a complex hedging strategy. Currently, the main address's primary short positions are: ETH $192 million, BTC $109 million, HYPE $51.43 million.
2. High Win Rate Traders Adjust Strategies: Previously, the “mysterious Whale who went long on BTC and ETH with $250 million” has once again increased their short positions, raising the scale from 299.69 coins to 657 coins (worth $70.9 million), with an entry price of $108,530, resulting in an unrealized profit of $472,000. Currently, the win rate of this address's seven openings within half a month has reached 100%.

Macroeconomic and institutional funds layout against the trend

There are obvious signs of buying on dips at the institutional level:

1. BlackRock's Large Accumulation: BlackRock's Address received 1,884 BTC (approximately 204.9 million USD) and 10,585 ETH (approximately 40.3 million USD) from CEX, totaling an accumulation worth 450 million USD, indicating institutional recognition of long-term value.
2. Whale Panic Sell-Off: The whale (address starting with 0xB041) panic sold 6,237 ETH (23.95 million USD) at an average price of 3,840 USD. This retail panic sell-off sharply contrasts with the active accumulation by institutions.

2. ETH Market Dynamics and Analysis

The painful lessons of whales are frequently seen, and operational strategies are diverging.

1. Huang Licheng has once again been liquidated: The ETH (25x leverage) long position of “Ma Ji Da Ge” Huang Licheng's address was completely liquidated, resulting in a loss of 1.57 million USD. He subsequently reopened a 25x leveraged ETH long position. As of now, his total loss stands at 13.76 million USD, making him the most painful individual investor case in this round of adjustment.
2. “Buy High, Sell Low” Whale Cuts Losses: A certain “Buy High, Sell Low” whale started cutting losses by selling ETH, which was bought at an average price of 4036 USD two days ago. It has sold 3200 ETH (approximately 12.2 million USD) at an average selling price of 3815 USD. This whale bought 7221 ETH at a higher price two days ago and has not yet completely liquidated its position, with expected total losses being significant.
3. Andrew Kang frequently changes direction: Andrew Kang's associated address has closed positions at a loss, having closed its 25x ETH long position, losing $62,000. His recent operations have been frequent, changing direction six times within a week. Although he has accumulated a profit of $2.72 million, it shows uncertainty in his judgment of short-term direction.

Institutional-level funds are quietly positioning themselves.

1. Whale accumulates at low positions: Recently, a whale that reduced its holdings of 24,000 ETH at an average price of $4,282 to realize a profit of $30.24 million has moved 12,000 ETH back on-chain from CEX, at a price of $3,854. Earlier, between June and August, it accumulated 86,000 ETH at an average price of $3,023, and during this correction, it demonstrated its ability to 'sell high and buy low' again.
2. New Address Large Accumulation: A newly created address withdrew 8,491 ETH (approximately 32.47 million USD) from CEX, with an average withdrawal price of 3,824 USD, indicating that large holders recognize the value at the current position.

Security incidents and fund flows

1. Radiant Capital hacker transfers funds: The Radiant Capital hacker has deposited 2834.6 ETH (approximately 10.8 million USD) into the mixer Tornado Cash.
2. Stablecoin Continuous Issuance: Circle has newly minted 750 million USDC on the Solana network. Since October 11, Circle has minted a total of 2.75 billion USDC on the Solana network, providing ample liquidity support for the market.

3. Other Altcoin Market Dynamics and Analysis

Public Chain Ecosystem: LINK Whale firmly holds

1. Two major whale addresses have increased their holdings: The whale address starting with 0xf386 withdrew 62,207 LINK (approximately 1.07 million USD) from CEX, and has accumulated a total increase of 1.1 million LINK (approximately 19 million USD) over the past 5 months. The whale address starting with 0xe8aa withdrew 66,113 LINK (approximately 1.14 million USD) from CEX, and has accumulated a total increase of 307,684 LINK (approximately 5.34 million USD) over the past month.
2. The loss address chooses to hold: A whale address starting with 0x929 deposited 304,700 LINK (approximately 5.28 million USD) to a CEX. Two months ago, this address purchased these tokens at an average entry price of about 24.96 USD. If sold at the current price, he would incur a loss of about 2.32 million USD, but the choice to hold demonstrates long-term confidence.

DeFi and RWA sectors: Institutional reallocation in progress

1. Abraxas Capital reduces its scale: its total nominal value of holdings decreased from 620 million USD to 440 million USD, achieving a weekly profit of 24.77 million USD. Today, it closed positions to take profits in multiple coins, and nearly 100 million USD was withdrawn, with some transferred to a CEX hot wallet.
2. Platform transaction fee income surges: Two addresses suspected of insider trading before the “1011 flash crash” generated $814,000 in transaction fees for Hyperliquid through just 3 transactions, reflecting the significant contribution of Whale trades to the income of DeFi platforms.

Capital rotation and abnormal flow

1. Large Transfer of Stolen Bitcoin: The stolen mining pool Lubian wallet address has once again appeared with a large transfer, sending a total of 15,959 BTC to 4 different addresses, worth approximately 1.83 billion USD.
2. Loss-making traders continue to operate: The whale address starting with 0x3fc has closed its BTC long position and instead opened a new BTC short order at an average price of $108,300, with a nominal position value of $80.28 million, currently with an unrealized loss of over 20%.

4. Market Overview and Trend Analysis

Overview: Short positions covering drive technical rebound

1. Short positions are being closed intensively: multiple important Whale Addresses are synchronously closing short positions, with a total scale exceeding 300 million USD.
2. Institutions are clearly positioning themselves during dips: Traditional institutions like BlackRock are making large-scale accumulations during the pullback.
3. Retail panic sentiment releases: Continuous liquidation cases of traders like Huang Licheng show that retail pessimism is nearing an extreme.

Trend Analysis: The sustainability of the rebound needs to be observed.

1. Key position for Bitcoin: BTC is forming support around $108,000, with resistance above at $112,000 to $115,000.
2. Ethereum Oversold Bounce: ETH finds support around $3800, with short-term resistance between $4000 and $4100.
3. The differentiation of altcoins is intensifying: high-quality assets like LINK may rebound first, while overvalued Meme coins still require caution regarding adjustment risks.
4. Risk Factor Monitoring: Pay attention to the position changes of large funds such as Abraxas Capital, as well as the remaining $50.99 million short positions of the “1011 insider Whale”.

V. Conclusion

When whales collectively take profits on their short positions and institutional funds increase their holdings against the trend, the market is often at a crucial turning point. On-chain data clearly shows that smart money is quietly shifting—from aggressive short bets to cautious wait-and-see or tentative long positions. The $450 million inflow from BlackRock stands in stark contrast to the panic selling by retail investors, reaffirming the market rule that “markets are born in despair.”

The cyclical nature of the market is like the tides, with rises and falls alternating non-stop. When “Brother Maji” Huang Licheng struggles on the edge of liquidation, when the whales who “buy high and sell low” pay the price for poor decisions, and when Abraxas Capital profits steadily through complex hedging strategies, we see the stark differences in investment philosophies under the same market conditions.

At this time of increased volatility, investors should pay more attention to the financial truths revealed by on-chain data, rather than being misled by short-term price fluctuations. After all, in the wave of crypto assets, what can traverse the cycles is never luck, but an accurate grasp of the deep logic of the market and strict risk management discipline.