A huge crypto whale has created panic with a $4.4 million combined short on XRP and ETH, raising questions about what may have inspired the decision.
According to data shared on 15 May, the trader opened a short position on ETH with 20X leverage and another on XRP with 8X leverage.
A bold move
The crypto market recently made a significant comeback, with Bitcoin soaring back towards its recent all-time high of $109,000.
Altcoins have also followed the same pattern, with ETH even outperforming the number one cryptocurrency.
Because of this, some analysts have suggested that a new altcoin season could be on the horizon since previous patterns show that such a trend happens when ETH beats BTC.
It is therefore a bold move for this bearish whale to bet on the crash of ETH with a 20X leverage at a time when hopes of a bull market are returning, especially for ETH which has been moving sideways for several months.
Similarly, XRP recently saw a significant rise and the sentiment around it shows positivity and expectation of a continuing upside especially as the SEC considers closing the case against the project which has lingered for years.
What is going on?
Many people in the crypto space are wondering what this whale knows that the rest of the community does not know. Could they have access to some top secret intelligence suggesting that these top two altcoins may be in danger?
For now, there’s no answer to this question. However, for a trader to stake over $4 million betting against ETH and XRP, there are questions that need to be asked, and the two projects need to investigate and find out what is going on.
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