A Whale Enters a Smart Trade on Bitcoin, Ethereum & Solana—Should You be Bullish or Bearish?

Recently, Bitcoin price cleared the crucial resistance at $100K, which made it the 5th largest asset, surpassing Amazon’s market capitalization. Since then, the entire market has turned extremely bullish. Bitcoin surged above $103,000, while Ethereum managed to rise close to $2400. On the other hand, the memecoins surged with a huge margin, with PEPE’s price attracting over 40% gains in 24 hours. However, after undergoing a huge rise, the markets are consolidating within a narrow range, but around the gains. 

Meanwhile, the whale activity has raised some concerns over the upcoming price action. 

Whale activity plays a major role as it deeply influences the sentiments of the market participants. The rise in whale accumulation usually increases the bullish sentiments, but the drop in their holdings raises concerns. Meanwhile, this latest whale movement has raised skepticism around the next price action of Bitcoin, Solana & Ethereum. As per the data from Lookonchain, a whale deposited 13M USDC to Hyperliquid to short these 3 top cryptos with 5x leverage. 

As per some analysts, this is a case of desperation capital, which has been disguised as conviction. A 5x leverage short across these tokens after a macro breakout and reflexive ignition does not demonstrate their intelligence. This does not seem to have hedged but a bet against momentum, liquidity, belief and reflexivity all at once. This kind of trade works in structurally broken markets or when the narratives are collapsing. 

Presently, the market sentiments have reversed as the retail is awakening, wherein the institutional flows are returning. One possibility could be that they could have bet on the long-term bearish action, probably the next bear market. However, the bear market ignition is a little compressed, with the ETF flows, sovereign adoption, and retail re-entry delaying the bearish trajectory. 

Although the bullish possibilities are higher, the retail participants are required to remain vigilant during the upcoming price action, as the rise in the volatility could attract more whale activity.