The Big Bitcoin Short (Part 2): Rumor mill suspects links to US government insiders
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where we break down the wild world of crypto in simple terms. Today, we’re diving into the latest buzz around a massive Bitcoin short trade tied to President Trump’s tariff announcement—rumors are flying about possible insider connections, and we’ll unpack it all with fresh updates from reliable sources. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant here to ask the questions you’re probably thinking! So, John, what’s all this about a “big Bitcoin short” and why are people whispering about government insiders?
Understanding Shorting in Crypto: The Basics
John: Great question to start with, Lila. Shorting in crypto means betting that the price of something like Bitcoin will drop—you borrow the asset, sell it high, and buy it back low to pocket the difference. It’s like rooting for a rainy day when you’ve sold umbrellas you don’t own yet.
Lila: Okay, that analogy helps! But how does this connect to a tariff announcement?
John: Exactly—in this case, a trader placed a huge short on Bitcoin right before President Trump’s post on 2025-10-10 announcing 100% tariffs on China, which tanked crypto prices and led to massive liquidations. (And no, Lila, it’s not like shorting your least favorite socks; this one’s serious business.)
The Background: Trump’s Tariff Post and Market Chaos
John: Let’s rewind to the event. On 2025-10-10, President Trump announced steep 100% tariffs on Chinese goods, causing Bitcoin to plunge and wiping out about $16 billion in long positions, as reported by Forbes. This wasn’t the first tariff-related shakeup; earlier in 2025-04-10, a tariff pause had sparked short liquidations and insider trading probes, per CryptoSlate.
Lila: Long positions? What’s that mean in plain English?
John: Good catch—long positions are bets that prices will rise, the opposite of shorts. When prices dropped suddenly after the announcement, those longs got liquidated, meaning traders lost their investments automatically. It’s like building a sandcastle at low tide and watching the wave come in unexpectedly.
The Mysterious Trade: Timing and Profits
John: Now, the star of the show: a trader opened a massive short position just minutes before Trump’s post on 2025-10-10, netting between $160 million and $200 million in profits, according to CryptoSlate and CoinCentral. Blockchain analysis showed poor execution on the trades, with over $150 million shorted on Bitcoin and $100 million on Ethereum, as noted in posts on X from crypto traders.
Lila: That timing sounds suspicious! Who is this trader?
John: Rumors point to Garrett Jin, former head of BitForex, linked to a wallet holding around 100,000 BTC worth about $11.4 billion as of 2025-10-14. But an anonymous trader denied any Trump family ties, despite speculation involving Barron Trump, per Hindustan Times—remember, these are just rumors, not proven facts.
Rumors of Insider Trading: Government Links?
John: The rumor mill is churning hard. Crypto investigators like Eye traced wallets and suggested possible ties to US government insiders, but Eye has since stepped back citing safety concerns, as detailed in the original CryptoSlate article from around 2025-10-13. This has revived debates on whether crypto trades based on policy leaks count as insider trading, especially with the record $19 billion liquidation spree.
Lila: Insider trading? Isn’t that illegal, like in stocks?
John: Spot on—it’s using non-public info for unfair advantage, and while crypto regulations are evolving, probes are underway. For instance, a Satoshi-era Bitcoin whale opened a $340 million short amid these allegations, as reported by Kanalcoin on 2025-10-13, fueling more scrutiny without confirmed links.
Current Developments: New Shorts and Market Sentiment
John: As of now, on 2025-10-15, the story’s heating up with a wallet tied to a rumored Trump insider adding a $500 million Bitcoin short right before recent Fed remarks, based on posts found on X and articles from AInvest dated 2025-10-13. Bitcoin and Ethereum prices remain volatile post-crash, with analysts questioning the timing.
Lila: So, what’s the market feeling like today?
John: Sentiment is mixed—some see it as a signal for more drops, others as smoke without fire. Earlier in 2025-05-25, a 50% EU tariff warning caused a 5% Bitcoin dip to $105,000, liquidating $600 million, per X posts, showing how policy news keeps shaking things up. (If only crypto had a crystal ball, right? But alas, we’re stuck with charts.)
Risks and Safeguards: Lessons for Traders
John: This saga highlights big risks in leveraged trading, where amplified bets can lead to huge losses—or gains, as seen here. Regulatory bodies are watching closely, and with insider trading probes, it’s a reminder to trade ethically.
Lila: Any tips to avoid getting caught in something like this?
John: Absolutely—here’s a quick list of safeguards:
- Stick to reputable exchanges with strong security, like those compliant with US regulations.
- Avoid high leverage if you’re new; start small to learn the ropes.
- Stay informed via trusted sources like CoinDesk or Cointelegraph for policy updates.
- Use stop-loss orders to limit potential damages during sudden drops.
- Never trade based on unverified rumors—always verify facts.
Looking Ahead: What’s Next for Crypto and Policy
John: Looking ahead, we might see tighter regulations on crypto trading tied to political events, especially with Trump’s administration pushing Bitcoin-friendly policies like a proposed 5-year accumulation plan discussed in March 2025 X posts. Volatility could continue if more tariffs or probes emerge.
Lila: Will this change how people trade?
John: Possibly—traders might become more cautious, and blockchain transparency could lead to better detection of suspicious activities. In the future, as of potential developments post-2025, expect more clarity from regulators on what constitutes insider info in crypto.
John: Whew, that was a deep dive into the intrigue of the Big Bitcoin Short—it’s a reminder that crypto’s excitement comes with real-world ties and risks. Stay curious, trade smart, and always double-check your sources. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—crypto’s full of twists, but understanding the basics keeps it fun and safe!
This article was created using the original article below and verified real-time sources:
- The Big Bitcoin Short (Part 2): Rumor mill suspects links to US government insiders
- The Big Bitcoin Short: This guy made $200M timing Trump’s tariff post perfectly
- Did Trump’s Tariff Trigger A Crypto Purge Or Just A Panic?
- Why is Barron Trump being accused of ‘insider trading’? Crypto short around China tariff decision sparks row
- Bitcoin News Today: Garrett Jin’s 30-Minute Bitcoin Short Before Trump Tariff Sparks Insider Trading Scrutiny