Air Force Raid! Wall Street Tycoons are betting wildly on Ethereum's plunge, where do retail investors go?
I am Mig, and today I will break down a significant signal: after Ethereum failed to break $5000, it was suddenly crushed by massive short positions, and behind it, hedge funds are 'directing' this long-short battle!
In simple terms, a group of Wall Street hedge funds (equivalent to whales in the financial circle) has been frantically increasing their short positions on Ethereum recently.
By mid-August, their short positions had surged from $2.3 billion to $4.2 billion, almost doubling!
What does this mean?—It means they are collectively betting that ETH will plummet, even going so far as to use real money to suppress prices.
Why do this? Let me give you an example: for instance, if you borrow someone else's ETH and sell it at a high price, then wait for the price to drop to buy it back at a low price to return it, you profit from the price difference—this is shorting.
The hedge funds may have been hit hard by the rising market, and now they are fighting back desperately, fearing ETH will rise again.
But interestingly, on the other side, asset management companies (like some traditional institutional funds) still hold $1.2 billion in long positions, firmly bullish.
There are also many retail investors and small investors in the market following suit and shorting, adding nearly $400 billion in short pressure... this situation is like 'an elephant fighting, the grass suffers'.
My personal view is: this situation often hides tremendous opportunities. Historical data shows that when short positions are extremely high, it can easily trigger a 'short squeeze'—which means prices suddenly rebound, and shorts are forced to close their positions hastily, further pushing up the coin price. For example, before Bitcoin surged in 2021, a similar situation occurred. So don’t be scared by short-term fluctuations. The big players tearing each other apart often signal a change in market trends.
Do you think Ethereum will be pushed down, or is it about to explode and surge? I await your insights in the comments! #加密市场回调
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