Crypto Strategy 'Countertrade' Closes Short Position, Adds $356M Long Exposure

Strategy Countertrade has closed its short position and initiated long positions in the top ten cryptocurrencies, realizing profits and raising its total exposure to $356 million (). This move aligns with the strategy's focus on capitalizing on market volatility and positioning for bullish trends. Ether and Bitcoin remain central to many of these long positions.

BitMine Immersion Technologies, the largest known corporate holder of ether, added $105 million to its Ether holdings in early 2026, bringing its total value to $12.6 billion. The company also holds $915 million in cash, part of its broader strategy to acquire up to 5% of the total ETH supply.

BlackRock's recent transfers of Bitcoin and Ethereum to Coinbase have intensified uncertainty in the crypto market. On-chain data shows the company moved $101 million in BTC and $22 million in ETH, which many traders interpret as a sign of potential selling pressure.

Why the Move Happened

Strategy Countertrade's decision to close short positions reflects growing confidence in the resilience of top cryptocurrencies. Recent price action and macroeconomic signals suggest a potential bottoming process for assets like Bitcoin and Ether.

BitMine's continued investment in Ether also underscores its long-term view of Ethereum's role in the crypto ecosystem. The firm has also increased its staking activity to generate yield on its holdings.

BlackRock's transfers coincide with ETF outflows and the expiry of $2.2 billion in crypto options. Analysts suggest that these moves reflect broader market caution and uncertainty about near-term price direction.

How Markets Responded

Bitcoin has traded in a narrow range between $85,500 and $90,000 for nearly three weeks as institutional demand wanes. ETF flows have remained weak, with Bitcoin spot ETFs recording $12.37 million in net outflows this week.

Ethereum has faced similar pressure, with ETF outflows contributing to increased volatility. Tom Lee, chairman of BitMine, predicts a potential drawdown to $1,800 for ETH in the first half of 2026.

Whales and large investors have continued to accumulate Ether, adding $11.2 million in the past week. However, smart money traders have offloaded $9.48 million during the same period, highlighting mixed signals in the market.

What Analysts Are Watching

Analysts are closely monitoring the Federal Reserve's next policy moves and potential shifts in the chairmanship. President Trump has reportedly selected a nominee for the next Fed chair, though no formal announcement has been made.

Fed Governor Stephen Miran has pushed for aggressive rate cuts in 2026, citing gradual labor market weakening. In contrast, Richmond Fed President Tom Barkin emphasizes a balanced approach amid uncertainties.

Market participants are also watching for signs of improved ETF inflows and broader risk-on sentiment. The New York Fed's liquidity interventions have helped stabilize short-term conditions, but longer-term demand remains unclear.