The price of Bitcoin (BTC) is currently at $103,754.80, with daily fluctuations ranging between $99,165 and $104,011; Ether (ETH) is staying at $2,344.16, with a fluctuation range between $2,180 and $2,365 (Investing.com). Over the past weekend, Bitcoin briefly fell below the $100,000 mark but quickly rebounded, mainly due to continued inflows of ETF funds and institutional capital entering the market, supporting market stabilization.
However, just as the market was coming out of the panic of Monday Blues, the on-chain data analysis platform Onchain Lens discovered that a well-known Ethereum whale was quietly entering the market to short Bitcoin, sparking discussions about leverage risks in the market. This trader, anonymously known as ETH 50x Guy, successfully capitalized on a bullish Ethereum move and then swiftly turned to the Bitcoin market to adopt an extreme short strategy, an operation that diverged from fundamental trends and raised market alertness. Pure market observation, not any investment advice.
From Ethereum to short Bitcoin
According to the tracking of on-chain data analysis platform Onchain Lens X, ETH 50x Guy recently used 25 times leverage to long Ether, locked in about $1.27 million in profit during the market rally, successfully exited at the highest point, and cashed out a total of about $101 million equivalent to ETH, surprisingly he turned to the Bitcoin market to adopt a short strategy. On the HyperLiquid derivatives platform, he transferred about $4.28 million in USDC funds to enter the market with up to 40x leverage to short Bitcoin, with an entry price of $101,594.5. This operation can be described as a textbook leveraged long operation, which has attracted the attention of analysts in the currency circle.
Radical bets raise market doubts
The timing of this short position has drawn the attention of analysts in the crypto space. Although Bitcoin briefly fell below 100,000, it quickly rebounded driven by strong capital inflows into ETFs and increased institutional holdings. From a fundamental perspective, the medium to long-term trend of Bitcoin has not weakened; instead, it has gained more favor from mainstream capital.
Therefore, ETH 50x Guy's reverse bet appears particularly abrupt. Some analysts speculate that he may have access to undisclosed bearish market information, attempting to seize short-term falling space; however, many believe that this type of high-leverage operation, which diverges from fundamentals, is more like a speculative gamble.
The giant whales and the spot buying market are showing a rebound in the opposite direction.
The current market shows a sentiment reaction contrary to that of the giant whales, with large addresses continuously accumulating Bitcoin and Ether spot, indicating that long-term investors still have confidence in the future. On the other hand, short-term high-leverage operations like ETH 50x Guy are attempting to profit from high-risk short-term market sentiment fluctuations, displaying a complete gambler's mentality, playing a much bigger gamble.
This divergence between fundamentals and sentiment reflects that the market is in a highly uncertain stage, easily influenced by emotions. Especially when high-leverage operations often become a model of success in the community, it is likely to mislead the market, causing retail investors who are unaware of the high risks in the cryptocurrency market to imitate.
Leveraged trading is essentially a double-edged sword. Taking 40x leverage as an example, as long as the price fluctuates in the opposite direction by more than 2.5%, it may trigger a full liquidation. For large whales with substantial capital, they are not afraid of high leverage short-selling operations, but for ordinary investors, this kind of operation is highly likely to lead to significant losses due to unexpected events.
What is more concerning is that when the market experiences similar aggressive position operations, if it triggers a chain liquidation or large-scale positions being closed, it will have a drastic impact on the overall coin price.
Institutional investors are positioning themselves in the crypto market, with stable inflows of ETF funds, leading to a more mature and healthy overall structure of crypto assets. However, this does not mean the market is immune, especially when high leverage and emotion-driven operations frequently occur, highlighting the need to be wary of potential systemic shocks.
ETH 50x Guy represents the mentality of speculative individuals, but for most investors, prudent capital management, reasonable leverage ratios, and a correct understanding of market fundamentals are still the keys to long-term survival in the market.
This article discusses the giant whale bullish on Ethereum profits exiting, followed by what does a 40x leverage short on Bitcoin mean? Originally appeared on Chain News ABMedia.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Whales are bullish on Ethereum and taking profits. What does it mean to short Bitcoin with 40x leverage?
The price of Bitcoin (BTC) is currently at $103,754.80, with daily fluctuations ranging between $99,165 and $104,011; Ether (ETH) is staying at $2,344.16, with a fluctuation range between $2,180 and $2,365 (Investing.com). Over the past weekend, Bitcoin briefly fell below the $100,000 mark but quickly rebounded, mainly due to continued inflows of ETF funds and institutional capital entering the market, supporting market stabilization.
However, just as the market was coming out of the panic of Monday Blues, the on-chain data analysis platform Onchain Lens discovered that a well-known Ethereum whale was quietly entering the market to short Bitcoin, sparking discussions about leverage risks in the market. This trader, anonymously known as ETH 50x Guy, successfully capitalized on a bullish Ethereum move and then swiftly turned to the Bitcoin market to adopt an extreme short strategy, an operation that diverged from fundamental trends and raised market alertness. Pure market observation, not any investment advice.
From Ethereum to short Bitcoin
According to the tracking of on-chain data analysis platform Onchain Lens X, ETH 50x Guy recently used 25 times leverage to long Ether, locked in about $1.27 million in profit during the market rally, successfully exited at the highest point, and cashed out a total of about $101 million equivalent to ETH, surprisingly he turned to the Bitcoin market to adopt a short strategy. On the HyperLiquid derivatives platform, he transferred about $4.28 million in USDC funds to enter the market with up to 40x leverage to short Bitcoin, with an entry price of $101,594.5. This operation can be described as a textbook leveraged long operation, which has attracted the attention of analysts in the currency circle.
Radical bets raise market doubts
The timing of this short position has drawn the attention of analysts in the crypto space. Although Bitcoin briefly fell below 100,000, it quickly rebounded driven by strong capital inflows into ETFs and increased institutional holdings. From a fundamental perspective, the medium to long-term trend of Bitcoin has not weakened; instead, it has gained more favor from mainstream capital.
Therefore, ETH 50x Guy's reverse bet appears particularly abrupt. Some analysts speculate that he may have access to undisclosed bearish market information, attempting to seize short-term falling space; however, many believe that this type of high-leverage operation, which diverges from fundamentals, is more like a speculative gamble.
The giant whales and the spot buying market are showing a rebound in the opposite direction.
The current market shows a sentiment reaction contrary to that of the giant whales, with large addresses continuously accumulating Bitcoin and Ether spot, indicating that long-term investors still have confidence in the future. On the other hand, short-term high-leverage operations like ETH 50x Guy are attempting to profit from high-risk short-term market sentiment fluctuations, displaying a complete gambler's mentality, playing a much bigger gamble.
This divergence between fundamentals and sentiment reflects that the market is in a highly uncertain stage, easily influenced by emotions. Especially when high-leverage operations often become a model of success in the community, it is likely to mislead the market, causing retail investors who are unaware of the high risks in the cryptocurrency market to imitate.
Leveraged trading is essentially a double-edged sword. Taking 40x leverage as an example, as long as the price fluctuates in the opposite direction by more than 2.5%, it may trigger a full liquidation. For large whales with substantial capital, they are not afraid of high leverage short-selling operations, but for ordinary investors, this kind of operation is highly likely to lead to significant losses due to unexpected events.
What is more concerning is that when the market experiences similar aggressive position operations, if it triggers a chain liquidation or large-scale positions being closed, it will have a drastic impact on the overall coin price.
Institutional investors are positioning themselves in the crypto market, with stable inflows of ETF funds, leading to a more mature and healthy overall structure of crypto assets. However, this does not mean the market is immune, especially when high leverage and emotion-driven operations frequently occur, highlighting the need to be wary of potential systemic shocks.
ETH 50x Guy represents the mentality of speculative individuals, but for most investors, prudent capital management, reasonable leverage ratios, and a correct understanding of market fundamentals are still the keys to long-term survival in the market.
This article discusses the giant whale bullish on Ethereum profits exiting, followed by what does a 40x leverage short on Bitcoin mean? Originally appeared on Chain News ABMedia.