Bitcoin News Today: Crypto Derivatives Market Stabilizes as Whales Trim Short Positions Amid Lingering Losses

The cryptocurrency derivatives market has shown signs of stabilization as major whale activity on Hyperliquid indicates a mixed response to recent price rebounds. Monitoring data from HyperInsight reveals that while some whales reduced their short positions in Bitcoin and Ether, others maintained or expanded positions that remain in significant unrealized losses, reflecting cautious optimism amid market volatility. This activity highlights the complex interplay between price movements and trader behavior in crypto derivatives markets [1].

A whale associated with the address 0x880ac increased its Ethereum short exposure by 88 coins, despite holding an unrealized loss of approximately $21.82 million. The position faces a liquidation risk at $4,928.885 per ETH, underscoring the fragility of leveraged short strategies in a rebounding market. Another whale with the address 0x5d2f44 reduced its Bitcoin short position by $811,773.16, yet still reports a floating loss of around $12.26 million. This reduction coincides with a liquidation threshold of $125,235.714 per BTC, suggesting heightened sensitivity to upward price swings.

New entrants into the derivatives space are also reshaping the landscape. A whale at 0x7fdafd initiated a large Avalanche (AVAX) short position of 187,238.61 coins, currently yielding a loss of $944,159.91. The liquidation price for this position is estimated at $145 per AVAX, indicating a potential trigger point for forced unwinding if the token’s price surges. Conversely, a BTC long position held by the address 0x4a207d was reduced by $840,552, leaving the whale with a floating profit of $1.32 million. The position is secured against liquidation at $102,940 per BTC, aligning with the broader market’s cautious optimism.

The data underscores a divergence in whale behavior. While reduced short positions may signal a tentative acceptance of bullish momentum, the persistence of large unrealized losses suggests that many traders remain exposed to downside risks. The liquidation price thresholds for these positions act as de facto support and resistance levels, which could amplify volatility if triggered. For example, the ETH short position at 0x880ac and the AVAX short at 0x7fdafd both highlight how leveraged bets can exacerbate market swings when critical price levels are breached.

The BTC long position’s profit, meanwhile, reflects the potential for gains in a consolidating market, though the reduction in exposure indicates a measured approach to risk management. These actions collectively point to a market in transition, where traders are recalibrating positions in response to shifting sentiment. However, the continued presence of large unrealized losses—particularly in ETH and BTC—signals that the sector remains vulnerable to renewed bearish pressure or macroeconomic shocks.

The analysis is derived directly from HyperInsight’s monitoring data, which tracks on-chain activity without external projections. No speculative forecasts or analyst interpretations are included in this summary, ensuring alignment with the observed facts [1].

Source: [1] [Hyperliquid Whale Watch: Market Rebound, Some Whales Reduce their Contract Positions but Remain in Unrealized Loss] [https://www.theblockbeats.info/en/flash/304838]