Crypto Markets Hold Steady Amid Softer Inflation Data and Rising Bearish Expectations
Crypto markets maintained a relatively stable position last week, with Bitcoin (BTC) trading within the $63,000 to $64,000 range and experiencing a nearly 3% decline. Ethereum (ETH), on the other hand, hovered around $1,900 but slipped about 1% over seven days.
The release of softer U.S. inflation data failed to trigger a sustained rebound in the market. Meanwhile, spot Bitcoin ETFs recorded consecutive outflows totaling approximately $192 million, adding to near-term pressure. The Crypto Fear & Greed Index remained at 38, indicating cautious sentiment across the market.
A prominent trader, DoshiAtoll, increased his short position on Bitcoin to 2,135 BTC ($136M) with 40x leverage on Hyperliquid (HYPE.CC), becoming the platform's largest short holder. This move signals strong bearish expectations from a major player and highlights the high-stakes nature of current market volatility.
Additionally, Alameda Research transferred $8.25 million in Solana (SOL) to BitGo custody across 24 transactions, likely initiating FTX creditor repayments. With over $200 million in SOL still held, this preliminary move suggests larger-scale distributions are imminent and could significantly impact market sentiment.
A whale who accumulated 1,768 BTC at $74,603 during the last bull market now faces nearly $20 million in unrealized losses after failing to take profit when gains peaked. This serves as a reminder of the emotional complexity involved in managing life-changing gains in volatile crypto markets.