UK investment firm Abraxas Capital Management has joined the long list of crypto bears as the firm bets big against leading cryptocurrencies amid the persisting crypto market turmoil, according to a recent post from Arkham Intelligence.
According to data provided by the source, Abraxas has made a big bearish move on crypto after shorting a massive $500 million on top cryptocurrencies including BTC, ETH, SOL, HYPE, and SUI.
While the crypto market has continued to trail downwards, the negative price actions appear to be in favor of investors betting against the crypto market over the last few days. Abraxas has opened significant short positions on BTC, ETH, HYPE, SOL, and SUI with $224 million, $163 million, $57 million, $44 million, and $560,000 respectively.
With the total short position on all involved cryptocurrencies hitting about $488 million, Abraxas has already amassed a massive $13.3 million profit. While the company is yet to close these positions, it appears that it is expecting the prices of these crypto tokens to continue trailing downwards in the near future.
With Abraxas committing the most funds to Bitcoin and Ethereum short positions, both accounting for more than half of the total amount shorted on all five cryptocurrencies, the move suggests that Abraxas is confident about extended volatility in Bitcoin and Ethereum, thereby preparing itself for a deeper correction.
Crypto sentiment weakens
As of June 17, the crypto market lost nearly $10 billion in its overall market capitalization as the broad crypto market bloodbath deepens. This has caused sentiment on the future prospects of leading cryptocurrencies to dampen, as investor confidence weakens.
This has seen bearish investors take charge, with those betting against crypto’s upsurge, making notable profits from their stakes.
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While the move comes amid growing uncertainty in the broad crypto market, Bitcoin and Ethereum are both struggling to maintain recent support levels, with the former noting a notable decline of 7.04% from the all-time high it achieved about a month ago.
With crypto investors increasingly staking against Bitcoin and other leading altcoins, market participants are carefully observing crucial on-chain movements to help them hedge against the soon-expected bear market.