Investment firm Abraxas Capital Management has made substantial bearish bets against cryptocurrencies by opening short positions worth $500 million across multiple major tokens.
Betting Against Major Cryptocurrencies
Abraxas Capital Management has opened short positions totaling $500 million on cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), HYPE, and SUI. The largest positions were $224 million on BTC and $163 million on ETH, indicating the firm's confidence in further price declines.
Weakening Market Sentiment
As of June 17, the total cryptocurrency market lost nearly $10 billion in capitalization, worsening negative sentiment among investors. The decline in BTC and ETH has also diminished investor confidence, with Bitcoin dropping 7.04% from its all-time high.
Impact of Short Positions on the Market
With a total short position of around $488 million, Abraxas has already recorded a profit of $13.3 million. The company's expectations for extended volatility suggest preparation for deeper price corrections.
As market sentiment deteriorates and uncertainty grows, firms like Abraxas continue to implement strategic investments to benefit from short-term price fluctuations.
