BTC OG Insider Whale Holding Long Position for Almost a Month Has Lost $5.55 Million in Funding Fees

A major crypto whale previously known for shorting Bitcoin and Ethereum has opened $325 million in long positions across Bitcoin, Ether, XRP, and Solana. The whale's latest move has led to a $5.55 million loss in funding fees, with the long positions now showing a $9.9 million paper loss. The market has reacted with mixed signals, as Bitcoin and Ethereum remain relatively flat while institutional demand for Solana continues to grow.

The whale's position includes 1,247 BTC valued at $113 million, 36,249 ETH worth $112 million, 506,000 SOL at $70 million, and 14 million XRP totaling $30 million according to reports. This represents a significant allocation across major crypto assets. The unrealized loss on these positions exceeds $300,000 at the moment.

Meanwhile, another whale holding 1,000 BTC and 203,340 ETH faces a total floating loss of $5.27 million, with funding fees already exceeding $5.4 million. This highlights the growing risks of long-term leveraged positions in volatile crypto markets.

Why Did This Happen?

The whale's recent entry into long positions follows a reversal in its trading strategy. Previously known for shorting Bitcoin and Ethereum, the trader has shifted to a bullish stance, likely anticipating a recovery in the broader crypto market. The timing of the move coincided with a period of relative stability in Bitcoin and Ethereum, which remained near key levels despite the bullish bet.

However, the volatility inherent in the crypto markets has led to significant losses in funding fees. As per data, the whale has incurred a $5.55 million loss in funding costs, indicating the high cost of maintaining leveraged positions over time.

How Did Markets React?

The broader market response has been mixed. Bitcoin and Ethereum remained largely flat, with Bitcoin hovering above $90,000. Despite the whale's large bullish bet, the overall market sentiment remains cautious. Institutional demand for Solana, on the other hand, has grown, with Solana ETFs recording a weekly inflow of $41 million.

In contrast, Ethereum ETFs have seen a net outflow of 58,467 ETH, while Bitcoin ETFs experienced a net outflow of 3,826 BTC. This suggests that while some investors are bullish, others are withdrawing liquidity, reflecting a cautious approach.

What Are Analysts Watching Next?

Analysts are monitoring the whale's potential for profit realization. If the market continues to trend upward, the whale could see a reversal in its current paper loss. Conversely, any further market correction could deepen the losses.

Institutional developments are also under scrutiny. Morgan Stanley recently filed for a spot Ethereum ETF that includes staking rewards, a move that could alter the dynamics of Ethereum's institutional adoption. Grayscale has also started distributing staking rewards from its Ethereum ETF, marking a new milestone for crypto investment products.

Additionally, the competitive landscape in the Solana ecosystem is evolving. Strategic investments and validator expansion by firms like Sol Strategies highlight the growing institutional interest in Solana infrastructure. These developments could influence the performance of Solana-based assets and the overall market sentiment.