Trading Firms Hold Over $600 Million in Bitcoin and Ethereum Shorts

Despite a sharp price rally in Bitcoin (BTC) and Ethereum (ETH), some trading firms have maintained their short positions. According to Lookonchain, Abraxas Capital, Fasanara Capital, and Wintermute still hold over $600 million in short positions in BTC and ETH.

The largest remaining on-chain short positions are held by market makers' hedging accounts, which suggests that the positions are more a reflection of market-making and hedging activity rather than a broad bearish bet. Abraxas Capital's two ETH shorts liquidate at $4,008 and $3,958, while spot trades near $2,440.

Wintermute's Bitcoin position survives until $251,307, which means that it would take a significant price increase for the position to face liquidation. The current prices are still far below the liquidation levels, making it unlikely for the positions to face immediate pressure unless BTC and ETH extend their rally significantly.

As reported by BeInCrypto, the crypto market rally triggered a wave of short liquidations on August 19, with short sellers losing $1.3 billion within 60 minutes as Bitcoin climbed 2.5%.