Ethereum News Today: Arthur Hayes Reverses ETH Short, Buys Back $8.3M Position After 20% Rally

Arthur Hayes, co-founder of the now-defunct BitMEX exchange, has made a dramatic reversal in his Ethereum position, purchasing back all the ETH he had sold the previous week and acquiring three other altcoins. This move has attracted attention in the crypto market, reflecting both the volatility of digital assets and the shifting strategies of seasoned traders. On August 2, Hayes sold 2,373 ETH for approximately $8.32 million, anticipating a decline in Ethereum’s price to as low as $3,000 [1]. At that time, he also offloaded other Ethereum-based tokens including ENA, AAVE, LDO, ETHFI, and PEPE [1].

However, the market defied his expectations. Ethereum surged, climbing more than 20% to reach $4,200 within days [3]. In response, Hayes executed a swift reversal, repurchasing all the ETH he had previously sold [3]. According to on-chain data, he transferred 14.8 million USDC to exchanges and institutional platforms, using the funds to buy back Ethereum and other assets at higher prices [1]. The repurchase included 1,250 ETH, 424,000 LDO, 420,000 ETHFI, and 92,000 PENDLE, amounting to a total of $6.85 million in assets [1]. This action was completed in under two hours, underscoring the speed at which transactions can occur in the crypto market.

Hayes’ reversal highlights the unpredictable nature of the crypto market and the importance of flexibility in trading strategies. Despite his bearish outlook, he adapted to the changing market environment, demonstrating a willingness to reassess positions in real time. His move has been characterized as a textbook example of “sell low, buy high,” and it offers insight into how even experienced traders navigate market fluctuations [7]. Analysts have noted that high-profile traders like Hayes can influence market sentiment, either reinforcing or challenging existing trends [6].

This event also reflects a broader trend of institutional and individual reentry into the market following a period of uncertainty. Hayes’ actions suggest a degree of confidence in Ethereum’s long-term potential, despite his earlier bearish forecasts. The rapid price movement of Ethereum serves as a reminder of the challenges inherent in predicting the market, particularly in an asset class known for its volatility.

Hayes has previously indicated a belief in a major crypto breakout driven by macroeconomic factors [9], and his recent trades may reflect a renewed conviction in the space. While the success of his strategy remains to be seen, his actions provide a clear example of how traders adjust to evolving conditions in the crypto market. The swift reversal underscores the need for agility and real-time analysis in a space where sentiment and prices can shift overnight.

Source:

[1] Arthur Hayes Did a U-Turn: He Bought Back All the ETH He Sold and Three Other Altcoins (https://en.bitcoinsistemi.com/arthur-hayes-did-a-u-turn-he-bought-back-all-the-eth-he-sold-and-three-other-altcoins/)

[3] Arthur Hayes' ETH Flip: A Microcosm of Institutional ... (https://www.ainvest.com/news/arthur-hayes-eth-flip-microcosm-institutional-reentry-ethereum-bullish-potential-2508/)

[6] Arthur Hayes 'Had to Buy It All Back' After Selling $8.3M Worth of ETH (https://www.coindesk.com/)

[7] Arthur Hayes 'Had to Buy It All Back' After Selling $8.3M Worth of ETH (https://www.coindesk.com/markets/2025/08/09/eth-jumps-7-to-usd4-200-highest-since-december-2021-as-analysts-forecast-what-s-next)

[9] Bitcoin: News & Updates - Page 2 of 76 - CryptoDnes EN (https://cryptodnes.bg/en/tag/bitcoin/page/2/)