The latest report published by Blockchain analysis platform LookOnChain shows that big crypto investors (whales) are buying Bitcoin. 
$111,963.18 It revealed that it started to adopt a new downward strategy in altcoins other than Especially XRP and Ethereum 
$4,011.20Aggressive short position attempts attract attention in . However, against these moves, macro risks such as volatility in the crypto market and Fed chairman Jerome Powell’s speech have serious effects on the balances.
Shorting Altcoins: Highly Leveraged Positions in XRP and ETH
According to LookOnChain data, three major crypto whales have made huge profits in previous bear cycles. The most aggressive of these whales entered with the expectation of earning approximately $160 million from a 20x leveraged short position on BTC and ETH over the weekend. The position opened on the ETH side currently shows a loss of 157 thousand dollars; On the XRP front, although there is only a $0.04 movement from the entry point, it is at a loss of $263 thousand.
The same whale reports that, in addition to XRP and ETH, it also tends to suppress altcoins such as DOGE, PEPE, ASTER with 3–5x leveraged positions. On the other hand, a 20x leveraged position was opened in SOL; However, this position incurs a loss of approximately $1 million.
Market uncertainty plays a big role in this altcoin-focused pressure strategy; because market sentiment has shifted rapidly from “greed” to “fear” since last week (the sentiment index dropped from 70 to 38).
Fed Effect: Powell’s Speech Will Determine the Course of the Markets
Market participants are fixated on Fed Chairman Jerome Powell’s speech, which will be released today. This speech will be decisive on interest rate cut expectations and the direction of general economic policies.
The sharp fluctuations we see in the US stock market today are also the effect of this expectation. While the Dow Jones index fell, Nasdaq fell around 1.1 percent. This shows that liquidity and risk appetite in crypto markets are open to sudden changes.
Additionally, Philadelphia Fed President Anna Paulson’s comments are also noteworthy for the markets: She pointed out that the labor market has weakened and gave signals that interest rate cuts may be necessary. This approach supports the cautious positions of investors.
LookOnChain’s findings show that major players in the crypto market act with aggressive positions, but these moves involve high risks. Leveraged positions, especially opened in highly liquid altcoins such as XRP, ETH and SOL, can incur large losses even in small price fluctuations. With Powell’s speech, there may be sudden changes in direction in the market. For investors, such highly leveraged transactions should be evaluated carefully and risk management should be prioritized.
