A HYPE whale just placed a $72 mln bearish bet — What does it know?

A whale shorts bet amid ongoing market uncertainty has raised questions about whether something significant is coming for the broader financial market.

Data from the derivatives platform CoinGlass reveals that a whale wallet address (0x8def9f5) has opened short positions worth $72.32 million across multiple markets, including crypto and tech stocks such as Bitcoin, Hyperliquid, TSLA, and NVDA, among others. 

The report shows that this whale is heavily positioned in crypto, with $47.78 million in Hyperliquid, $12.37 million in Bitcoin, and $73.41K in Toncoin. 

Whale’s strong conviction in HYPE short bet

In addition to these crypto bets, especially in Hyperliquid, another whale appears to have followed the same trend, as disclosed by crypto transaction tracker Onchain Lens.

A post on X revealed that a whale shorted a significant 338,084 HYPE tokens worth $13.40 million at an average price level of $39.65.

Looking at these massive short bets around HYPE, the question now is, what’s next for the asset?

According to TradingView, HYPE’s daily chart shows that the asset has lost support from both an ascending trendline and the horizontal $40 level, which it had been holding since the 10th of April.

In fact, HYPE’s price has not only broken below these key support levels but has also closed a daily candle under $40.

Based on the current price action, if the momentum continues and HYPE remains below the $40 level, there is strong potential for the asset to extend its downward move and decline another 8.50% toward its next support at $35.

However, this bearish outlook could be invalidated if the price reclaims and holds above the $40 level.

Whale short bets generate $43.61 million profit

Apart from these crypto positions, the whale’s $72.32 million short positions also include a $7.11 million bet in SanDik (SNDK), NVDA worth $525.79k, TSLA worth $462.12k, Cerebras Systems (CBRS) worth $582.74k, and XYZ100 worth $755.80k.

In fact, the whale has shorted the market and currently holds a massive long position in PAX Gold worth $1.76 million. So far, the whale has generated an unrealized profit of over $43.61 million across all these bets. 

The potential reason behind these significant $72.32 million short bets appears to be the broader market sentiment, which remains quite bearish due to ongoing geopolitical tensions in West Asia, the Consumer Price Index (CPI) rising to 3.80%, and a sharp decline in global oil reserves.

These massive bets now seem to further strengthen the bearish outlook. 

Final Summary

• A crypto whale opened short positions worth $72.32 million across crypto and tech stocks and has so far generated an unrealized profit of over $43.61 million.
• The whale’s largest bet is against Hyperliquid, with a massive $47.78 million short position in HYPE.