Three Trading Firms Maintain Large Short Positions in Bitcoin and Ethereum Amid Market Rally
Despite a significant price rally, three major trading firms—Abraxas Capital, Fasanara Capital, and Wintermute—are still holding over $600 million worth of short positions on Bitcoin (BTC) and Ethereum (ETH). According to blockchain tracker Lookonchain, these large shorts are attributed to market maker hedging accounts rather than speculative bearish bets. The recent rally has already led to widespread liquidations: in one 60-minute period alone, $1.3 billion was lost by short sellers as Bitcoin surged nearly 2.5%. The remaining positions held by these firms have liquidation prices far above current market levels—some requiring a more than 60% price increase before triggering. For example, Abraxas Capital's ETH shorts would only be at risk if Ethereum rises to around $4,000 from its current level of approximately $2,440. Wintermute’s Bitcoin short position is liquidated above $251,307 against a spot price near $77,381. While some firms are already underwater on their positions—Fasanara Capital's ETH short at 15X leverage shows an 18.9% loss—others like Wintermute remain marginally profitable. Analysts suggest that the remaining shorts reflect hedging strategies rather than outright bearish sentiment, and they pose little immediate risk unless Bitcoin or Ethereum continue to rise sharply.
Topics: Bitcoin crypto market dynamics Ethereum short selling