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Jerome Powell’s update to shake markets up? Whales brace themselves for a dip, but there’s a twist.
Blockchain intelligence company LookOnChain just reported a fresh wave of bearish allocations on several major-cap altcoins, as well as Bitcoin (BTC). In further detail, the three crypto whales in question have made humongous profits during the previous bear cycles.
With the most profitable out of the three whipping up $160 million gains from Bitcoin (BTC) & Ethereum (ETH) shorts on last weekend’s crash, two other heavyweight-class crypto players took inspiration, placing cross shorts on Dogecoin (DOGE), Pepe Token (PEPE), Ripple (XRP) Ethereum (ETH), Aster coin (ASTER) & Solana (SOL).
Besides the #BitcoinOG who made over $160M shorting $BTC and $ETH during the crash, two other whales with significant profits on #Hyperliquid are also heavily shorting the market.
Whale 0x9eec9 — with $31.8M in profit — currently holds $98M in shorts across $DOGE, $ETH, $PEPE,… pic.twitter.com/qZfJIbO6ba
In the first instance, the crypto whale put a brave XRP coin short play with 20x leverage, and is already $263K down in unrealized profits, despite XRP’s price moving just 4 cents above the entry value. An identical play on Ether (ETH) is also down $157K, despite Ethereum’s price dropping back below $4K on Tuesday morning.
However, this short-selling crypto whale is up $3 million in unrealized daily profits, as the other three short-selling plays with significantly smaller leverage seem to go their way. With Dogecoin (DOGE), Pepe Token (PEPE) & Aster coin (ASTER) all sharing 3-5x multiplied leverage, the whale expects these altcoins to dip further down.
Due to current market instability, the set of these 5 leveraged short-selling plays on XRP, ETH, PEPE, DOGE & ASTER could go both ways. The overall market sentiment shifted from last week’s greed to fear today, tumbling from 70 to 38 in a matter of days. However, Solana (SOL) might have exceeded expectations of some bears.
The third crypto whale in question poses a different example, with the 20x leveraged Solana (SOL) price play falling short with $1 million in unrealized losses. Ultimately, crypto market watchers are expecting a further dip during the FED Chair Jerome Powell’s speech today.
This assumption might encourage more crypto whales to book profit before the Fed Chair drops knowledge on the economic situation later on today, even though a mention of a Fed rate cut is still plausible.
Leveraged trading is at an all-time high, racking up billions in trading volumes daily. However, the adoption of leverage on the crypto markets magnifies liquidation risks due to exposure to potentially larger gains.
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The move likely stems from anticipation of the Powell speech, as investors adjust positions based on expected monetary policy shifts.
XRP, PEPE & Dogecoin may be seen as volatile or speculative, making them prime targets for shorting ahead of major economic announcements.
It refers to a speech by a key financial figure, likely Jerome Powell, Chair of the Federal Reserve, which can influence crypto markets.
Shorting by crypto currency whales could lead to price drops, creating risks or buying opportunities for smaller investors.
Stay informed with DailyCoin, monitor market trends, and consider consulting a financial advisor before making moves.
This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.
Tadas Klimaševskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.
Crypto features | October
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