Whales simultaneously short 36.22 million BTC and go long 13.67 million ETH. What is the mystery behind this hedge?

According to the latest news, a whale today adopted a complex hedging strategy: simultaneously establishing short positions in BTC and long positions in ETH. Specifically, the whale shorted 397.98 BTC (approximately $36.22 million) with 20x leverage, while going long 4383.15 ETH (approximately $13.67 million) with 14x leverage. Currently, the account is in a slight unrealized loss. This operation reflects that, in the current market environment, large funds are beginning to adopt more cautious risk management strategies.

Core Logic of the Hedging Position

The interesting aspect of this trade is that the whale is not simply bullish or bearish on a single coin, but is expressing differentiated market views through varying leverage ratios and position sizes.

From the data, this whale’s hedging strategy has several characteristics:

• Unequal position sizes: The short position in BTC is significantly larger than the long in ETH, indicating a stronger bearish view on BTC.
• Unequal leverage ratios: Short BTC uses 20x leverage, while long ETH uses only 14x, reflecting more refined risk management.
• Staggered position building: The BTC short was established earlier, while the ETH long was opened today, indicating a dynamic adjustment process.

Why at this specific time

Market data shows that ETH is currently priced at $3,114.22, up 3.32% over the past 7 days but down 6.50% over the past 30 days. This suggests that although ETH has recently rebounded, it remains weak in the medium term. Against this backdrop, the whale’s decision to go long ETH may consider several factors:

Changes in market sentiment

Recent monitoring data indicates a clear divergence in whale strategies over the past few days. Some whales are cutting losses (e.g., one whale closed BTC longs with a $3.77 million loss), while others are increasing their longs (e.g., one whale opened a new ETH long worth $6.17 million). The whale involved in this hedging operation is positioned between these approaches, adopting a more balanced strategy.

Risk management in leveraged trading

It’s worth noting that although this whale’s total position size approaches $50 million, the hedging approach effectively offsets systemic market risks. If BTC and ETH move in opposite directions, gains on one side could offset losses on the other.

What does the current unrealized loss indicate

The account is in a slight unrealized loss, which is quite interesting. This implies that:

• The BTC short may have slight gains (BTC price possibly slightly above the entry price)
• The ETH long may have slight losses (ETH price possibly slightly below the entry price)
• The gains and losses roughly offset each other

This reflects that the market is experiencing significant volatility at this point, but the overall trend remains unclear.

Market implications and reflections

Compared to recent aggressive whale operations (such as 40x leverage and high-risk one-sided bets), this strategy appears more rational. It indicates that:

• Large funds are beginning to pay more attention to risk management in the current market environment.
• There are differing opinions on the future direction of BTC and ETH, but they still want to participate.
• Managing risk through hedging rather than one-sided bets is a more mature strategy.

Summary

This whale’s hedging operation demonstrates an interesting market phenomenon: amid the divergence of whale strategies, some large funds are choosing more cautious and balanced approaches. Shorting over $36 million worth of BTC while going long over $13 million worth of ETH essentially signals, “I have market judgments, but I also acknowledge the risks.” Although the account is currently in a floating loss, this hedging mindset itself is noteworthy—it may indicate that market participants are adjusting their expectations from aggressive to rational.