A legendary crypto trader known as “0xAlbatross”—who reportedly made $192 million shorting Bitcoin and Ethereum during the 2022 crash—is back, placing new bearish bets as crypto markets face renewed volatility.
The move has sparked debate among traders and analysts, raising questions about whether this signals an impending correction—or simply another tactical play in an overheated derivatives market.
Whale Watch: $45 Million in New Short Positions
Blockchain analytics platform Nansen revealed that 0xAlbatross added over $45 million in short positions across BTC and ETH perpetual futures last week via Binance and Bybit. This follows a pattern similar to his 2022 trades, where he profited by anticipating liquidation cascades during market panics.
Bitcoin currently trades around $61,500, stuck in a narrow consolidation range between $60,000 and $63,000. Funding rates have turned slightly positive (+0.012%), suggesting that long positions are dominating—a setup that often precedes sharp corrections.
Meanwhile, ETH slipped 3.4% to $2,250, with over $300 million in leveraged long positions liquidated in just 48 hours.
Macro Pressure Adds to Bearish Bias
The timing of 0xAlbatross’s re-entry aligns with rising macro pressures. U.S. Treasury yields have climbed above 4.8%, and equities continue to weaken amid persistent inflation fears—conditions that often trigger capital outflows from risk assets like crypto.
“Smart traders are positioning for volatility, not necessarily collapse,” said Lucas Grant, head of derivatives strategy at QCP Capital. “The short interest may be more about timing liquidity stress than predicting another meltdown.”
The Psychology Behind the Trade
Within the crypto community, 0xAlbatross has become a symbol of contrarian discipline. His reappearance has fueled social media chatter, with copy-traders rushing to mimic his moves. Yet analysts caution against herd behavior.
“He trades liquidity zones, not narratives,” said Grant. “Retail investors often mistake his positioning for directional conviction—it’s actually opportunistic.”
Market Outlook: Short-Term Pain, Long-Term Resilience
If Bitcoin fails to break above $63,500, analysts expect a potential pullback toward $58,000. However, institutional inflows into Bitcoin ETFs remain steady, suggesting downside may be limited.
Whether 0xAlbatross’s return marks the start of a deeper correction or simply reflects tactical hedging, his influence underscores a key truth: in crypto markets, sentiment can turn faster than fundamentals.
As traders brace for volatility, the message is clear—smart money is back in play, and it’s watching Bitcoin’s next move very closely.
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