A prominent investor, identified as “smart money,” has established significant leveraged short positions across major cryptocurrencies, signaling a strong bearish outlook.
Details reveal a $1.9 million Ethereum (ETH) short position with 25x leverage opened at an average price of $3,803, indicating a substantial bet on declining ETH value.
This position complements larger shorts on other major assets: a $15.73 million Bitcoin (BTC) short using 40x leverage and an $11.05 million Solana (SOL) short at 20x leverage.
Collectively, this diversified high-leverage strategy represents a major wager anticipating a broad downturn within the cryptocurrency market. The positions, active on the Hyperliquid derivatives platform, highlight concerns over potential near-term volatility.
Such aggressive use of leverage, particularly the 25x and 40x levels, significantly amplifies potential profits and losses, requiring sophisticated risk management. While capable of magnifying volatility, these positions have already yielded substantial gains.
The strategy has proven profitable, generating in excess of $34 million in profits from these leveraged short trades to date.