The whale is shorting, and volatility in the crypto market is about to increase
According to BlockBeats, on August 3rd, known as the "insider trader" @qwatio continued to roll over positions an hour and a half ago, increasing the short position value to 300 million USD. Currently, they are shorting four tokens: BTC, ETH, XRP, and SOL, with a floating profit of 7 million USD.
Looking back at @qwatio's trading history, their trading style is aggressive, having experienced liquidation multiple times while continuing to increase positions. At the beginning of July, @qwatio encountered partial liquidation 10 times in a row, accumulating losses of over 14 million USD, yet still heavily shorting Bitcoin with 40x leverage, amounting to approximately 55.85 million USD, while also opening a 25x leveraged short position in Ethereum for 11.05 million USD.
@qwatio's recent increase in short positions may have the following impacts on the crypto market:
Increased market volatility: As a whale-level trader, their large-scale shorting operations will affect the market supply and demand dynamics. If the subsequent market trend aligns with their expectations, it may trigger follow-the-trend shorting behavior, causing the prices of related tokens to face significant downward pressure, increasing short-term market volatility. Changes in investor sentiment: This may trigger panic sentiment in the market, especially causing psychological pressure for investors holding long positions. Some investors may choose to close positions to stop losses or follow the trend to short, further affecting the balance of buying and selling power in the market. Escalation of counterpart trading: If there are whales going long that form a counterparty to @qwatio, the competition between the two sides will become more intense. If one side makes an operational error, such as price trends moving opposite to position direction and reaching the liquidation line, it will trigger large-scale liquidations, further amplifying market volatility.
