A new report from the blockchain analytics platform LookOnChain reveals a growing trend among major cryptocurrency investors, known as whales, who are increasingly using aggressive short-selling strategies focused on altcoins rather than Bitcoin, currently trading near $113,088. This shift has drawn attention to heavy short positions in XRP and Ethereum (ETH), priced around $4,103, fueling higher volatility and uncertainty ahead of a key speech by Federal Reserve Chair Jerome Powell.
According to LookOnChain, three major whales who profited significantly during previous market downturns have now opened highly leveraged short positions. One particularly active whale reportedly initiated 20x leverage shorts on BTC and ETH, targeting potential gains of up to $160 million. However, the current results show unrealized losses of about $157,000 on ETH and $263,000 on XRP, despite minimal price movements.
The same whale is also targeting other altcoins, including Doge, Pepe and Aster, through leverage between 3x and 5x, while a 20x leveraged position in Solana (SOL) has already resulted in an estimated $1 million loss. Analysts link these aggressive short tactics to a sharp change in market sentiment, which shifted from greed to fear as the Crypto Fear & Greed Index fell from 70 to 38 in just one week.
Investors are now closely watching Jerome Powell’s upcoming remarks, expected to shape market expectations for interest rates and broader economic policy. Recent declines in major US stock indices, such as the Dow Jones and Nasdaq, which fell about 1.1%, reflect investor caution ahead of the speech. Comments from Philadelphia Fed President Anna Paulson about a weakening labor market and potential rate cuts have also reinforced a more defensive stance among traders.
The LookOnChain report highlights how large-scale leveraged trades by whales amplify risks across the crypto market. Even small price fluctuations in liquid altcoins like XRP, ETH and SOL can lead to substantial losses under high leverage. With Powell’s speech potentially acting as a market catalyst, analysts stress the importance of risk management in navigating these volatile conditions.