A whale shorting BTC, ETH, and SOL with $13M USDC and 5x leverage (total exposure of $65M) can have the following short-term and potential medium-term impacts on the price of these coins:
1. Short-Term Bearish Pressure
The shorting action itself signals bearish sentiment, possibly prompting other traders to sell or open shorts.
If the position is placed aggressively, it can cause immediate downward pressure on BTC, ETH, and SOL prices due to market reaction and order book imbalances.
2. Increased Volatility
Such a large leveraged position increases volatility, especially if prices move against the whale, potentially leading to large liquidations (which could actually push prices up sharply).
If prices drop in line with the whale's bet, it could lead to further short interest and panic selling.
3. Medium-Term Scenarios
If the market drops: The whale profits, which could validate the bearish bias and lead to more selling.
If the market rises: The whale may be forced to cover (buy back) the shorts to avoid liquidation, creating buying pressure and potentially causing a short squeeze, especially on SOL and ETH which tend to be more volatile than BTC.
Summary:
Short-term: Likely mild-to-moderate bearish pressure on BTC, ETH, and SOL.
Medium-term: Depends on market responseโeither reinforcing the downtrend or causing a reversal via short squeeze.
