Despite Bitcoin’s ongoing bullish momentum and a 29% gain from its February low, significant bearish positioning is emerging in derivatives markets. An influential whale linked to London-based asset manager Fasanara Capital holds a $38 million crypto short position, having previously profited $159 million over seven months. Concurrently, negative funding rates at major exchanges like Binance and Bybit point to unusual demand for short bets, raising questions about a potential near-term correction.
Bitcoin struggled to trade above $78,000, yet many analysts believe the cryptocurrency is on the verge of a longer-term breakout. This bullish sentiment contrasts with significant bearish activity in the derivatives market.
A major trader known as “BobbyBigSize” on the Hyperliquid exchange maintains a $38 million short position in Bitcoin and several altcoins. The same entity has generated $159 million in profits over the past seven months using algorithmic trading strategies.
Arkham data has linked this trading address to Fasanara Capital, an institutional asset manager that reportedly oversees over $5 billion. Fasanara Digital, its crypto-focused arm, manages $400 million across various strategies.
Currently, the whale’s portfolio is predominantly bearish, suggesting an expectation of a short-term market correction. However, the trader also opened a $21 million leveraged long position in Ethereum last week, indicating selective short-term confidence.
In parallel, funding rates for BTC are negative on Binance and Bybit, signaling unusually high demand for bearish leverage among traders. This aligns with the whale’s overall bearish positioning on Hyperliquid, where funding rates remain slightly positive.
The whale’s average trade duration is slightly longer than two weeks, with median positions lasting less than four days. This algorithmic trader has executed $11 billion in trades on Hyperliquid, with 63% resulting in positive outcomes.
Despite its past success, the account has failed to sustain gains recently, recording a $561,000 loss over the past 30 days. This evidences that no single trading strategy lasts indefinitely in volatile crypto markets.
