On-chain data indicates increased activity of dormant Bitcoin, with a notable spike of 25,000 BTC inflows to exchanges, suggesting potential selling pressure that aligns with Wynn's bearish outlook.

Crypto trader James Wynn has made a significant shift in his trading strategy, moving from a bullish to a bearish stance on Bitcoin by opening a $111 million short position on 1,038.7 BTC at a price of $107,711.1.

Overall trading volume for Bitcoin surged over $1.2 billion in the hour following the sell-off, reflecting increased market activity and potential for further selling pressure.

The recent downturn in Bitcoin's value, which saw it drop below $108,000, was influenced by former President Donald Trump's announcement of a 50% tariff on EU imports, leading to a local bottom of $107,431 on May 24.

Despite the recent volatility, some traders believe that as long as Bitcoin closes above $104,000, it will still be considered acceptable within the resistance zone.

The current long/short ratio for Bitcoin stands at 1.0375, indicating a volatile and uncertain sentiment in the crypto trading landscape.

This aggressive liquidation coincided with a $1,000 drop in Bitcoin's price from $107,500 to $106,500, creating significant market volatility and raising concerns among traders.

Wynn's bearish pivot contrasts with optimistic forecasts from analysts like Tom Lee, who predicts Bitcoin could reach $250,000 by the end of the year, highlighting the divided sentiment among traders.

This decision follows the closure of his long positions, where he liquidated 2,561 BTC worth $273.5 million on May 21, 2025, securing a profit of $4.5 million before incurring a $13.4 million loss on the recent trade.

Institutional flows, particularly from Bitcoin ETFs, are significantly impacting Bitcoin's price stability, with recent outflows suggesting cautious investor sentiment.

As of the latest reports, Bitcoin was trading near $106,500, testing key support levels, while the Relative Strength Index (RSI) indicated a neutral-to-bearish momentum.

The sell-off has also impacted altcoins, with Ethereum and Binance Coin experiencing declines of 0.8% and 0.5%, respectively, reflecting a broader risk-off sentiment in the market.