Whale adds to BTC short positions up to $839,000, with shorts accounting for as much as 90%. What does this mean?

Marked as “Shanzhai Air Force Leader” large account address has recently continued to increase BTC short positions, with the latest holdings amounting to approximately $839,000, and an opening average price of $92,490.8. More notably, in the current perpetual contract position, shorts account for as much as 90%, reflecting a clear bearish attitude towards the market’s future direction. According to the latest news, this address’s total account value is about $28 million, with cumulative profits exceeding $78.025 million for the entire cycle, making it an experienced professional operator in the market.

Who is this large account?

“Shanzhai Air Force Leader” is a well-known short seller in the market, whose trading style and historical performance have been widely observed. According to relevant information, this address has been deploying short positions on over 20 altcoins since November, with an initial position of about $20 million, now expanded to $40.7 million. As of January 5, the address’s cumulative profit for the year has reached $81 million, which fully demonstrates its trading capability and market judgment.

Current position composition overview

The position structure of this address is quite diversified. Besides BTC shorts, it also holds various token positions:

The meaning of 90% short ratio

A short ratio reaching 90% is quite extreme and reflects several key points:

• Strong stance: This large account has a very clear bearish outlook for the market, not just exploratory positions but tactical heavy allocations.
• Risk appetite: Although holding multiple tokens, the core position clearly points to a short bias, indicating an assessment that the market may face correction risks.
• Historical validation: From the $81 million profit this year, such an extreme allocation has indeed brought gains in the past.

Market environment comparison

It is worth noting that BTC’s performance at the time of the news release was not a continuous decline. According to the latest data, BTC is currently priced at $92,795.12, down 0.55% in 24 hours, but up 4.77% over the past 7 days. This indicates that the large account’s short positions are under some floating loss pressure, yet it still chooses to add to its short positions, further demonstrating its strong bearish outlook.

Professional short seller’s risk management

Although the account’s position allocation appears aggressive, its diversified token holdings reflect some risk management awareness. Holding assets like LIT, HYPE, ETH, etc., may be to hedge against risks in a single direction or to diversify across different sectors. While this approach may seem contradictory, it is a common risk hedging strategy among professional traders.

Summary

“Shanzhai Air Force Leader” increasing BTC shorts and maintaining an extreme 90% short ratio reflects this experienced large account’s clear bearish expectation for the market’s future. Its record of $81 million profit this year has validated such judgment in the past. However, it is important to note that BTC is currently maintaining a 7-day upward trend, and this account’s short positions are under floating loss. Increasing shorts during an upward trend either indicates an expectation of a larger correction or a view that the current rally is a rebound rather than a trend reversal. The subsequent movements of this address will be an important indicator to observe market bullish-bearish divergence.