UK Investment Firm Takes Bearish Stance on Cryptos

UK investment firm Abraxas Capital Management has joined the ranks of crypto bears, betting heavily against leading cryptocurrencies amidst ongoing market turmoil, as reported by Arkham Intelligence.

Major Short Positions

Data reveals that Abraxas has significantly shorted top cryptocurrencies with a total of $500 million, including BTC, ETH, SOL, HYPE, and SUI. The firm has initiated substantial short positions as follows:
– BTC: $224 million
– ETH: $163 million
– HYPE: $57 million
– SOL: $44 million
– SUI: $560,000
This brings the total short position across these cryptocurrencies to approximately $488 million, yielding a profit of $13.3 million already. The firm has not closed these positions, indicating expectations of further declines in prices.

Focus on Bitcoin and Ethereum

Abraxas predominantly allocated funds to short positions in Bitcoin and Ethereum, representing over half of the total short amount across all five cryptocurrencies. This strategy reflects the firm’s confidence in prolonged volatility and a potential deeper correction in the market.

Weakening Crypto Sentiment

As of June 17, the crypto market saw a downturn of nearly $10 billion in overall market capitalization, casting a shadow over future prospects for major cryptocurrencies. Investor sentiment has diminished significantly, leading to increased bearish actions.

Bitcoin and Ethereum struggle to maintain recent support levels, with Bitcoin seeing a 7.04% decline from its recent all-time high around a month ago. As bearish investors gain momentum, market participants are closely monitoring key on-chain movements to prepare for an anticipated bear market.