Major Trading Firms Hold $600M in Bitcoin and Ethereum Shorts

The recent price surge in Bitcoin (BTC) and Ethereum (ETH) has left some market participants with significant losses. According to blockchain tracker Lookonchain, three trading firms, Abraxas Capital, Fasanara Capital, and Wintermute, still hold over $600 million in short positions in both BTC and ETH.

The liquidation prices for these short positions sit far above current market levels, indicating that the firms may not face immediate pressure unless Bitcoin and Ethereum extend their rally significantly. The largest remaining on-chain short positions are held by market makers hedging accounts, with Abraxas Capital running the largest book.

Abraxas Capital's two ETH shorts liquidate at $4,008 and $3,958, while spot trades near $2,440. Its BTC shorts liquidate at $128,521 and $140,437 against a $77,381 spot price. Wintermute's Bitcoin position survives until $251,307.

The recent market rally, fueled by policy moves, triggered a wave of short liquidations. BeInCrypto reported that on August 19, short sellers lost $1.3 billion within 60 minutes as Bitcoin climbed 2.5%. The broader sell-off in bearish positions intensified, with short liquidations reaching $2.74 billion as 172,202 traders were liquidated.