London-based Abraxas Capital is facing over $100 million in unrealized losses from shorting cryptocurrencies, highlighting significant risks for institutional investors.
Abraxas Capital Losses
According to monitoring data, Abraxas Capital incurred more than $100 million in losses on shorts of BTC, ETH, SOL, HYPE, and SUI. These significant losses were observed as market trends shifted to a bullish direction. Specifically, information from PANews indicates significant holdings of 113,819 ETH, leading to losses exceeding $144 million.
Regulatory Risks and Market Data
Collected data shows Ethereum (ETH) trading at $4,225.01, with a market cap of about $510 billion. Over the past 90 days, ETH's price has surged by 68%. Such metrics draw attention to potential regulatory interest due to rising volatility and risks associated with high leverage.
Impact on the Crypto Market
The situation surrounding Abraxas Capital could have significant ramifications for market stability. In the past, similar financial squeezes during bullish markets have led to substantial liquidations. Current trends may provoke increased scrutiny from regulators and systemic risks linked to high-leverage practices.
The losses faced by Abraxas Capital highlight the risks associated with trading in the crypto market and may signal the need for closer monitoring of institutional investors.
