Whale stops profit-taking and reduces positions, resulting in an unrealized loss of 930,000: switching from a floating profit of 17,000 in BTC to a loss of 940,000 in ETH short positions

A whale named “Lightning Reversal” has been continuously adjusting their positions today. According to Hyperinsight monitoring, this active on-chain trader is currently long 11.8927 BTC (approximately $1.09 million) with 20x leverage, with an unrealized profit of $17,000; simultaneously, they are short 11,366.46 ETH at 14x leverage, with an average entry price of $3,073.66, and an unrealized loss of $949,000. The overall unrealized loss of the account is $930,000. This operational combination reflects the typical risk management characteristics present in the current market.

Current Account Status: Risk Switching Between Long and Short Positions

Long positions are shrinking, while short positions are expanding unrealized losses

This whale’s account shows a clear “one long, one short” structure, but the risk distribution is extremely uneven:

While the BTC long position is profitable, its size is relatively small; the massive unrealized loss on ETH short is the main pressure on the account. According to related information, this whale also reduced positions on January 9, and today continued to take profits and reduce BTC longs, indicating this is not impulsive but part of a clear risk management rhythm.

Why reduce BTC longs now?

Based on the market background provided by relevant sources, several key factors are at play:

• Macro rate cut expectations still exist: Although the probability of a rate cut in January has surged to 96%, the market still anchors on a full-year 50 basis point rate cut expectation, supporting a medium-term bullish outlook on core assets.
• On-chain funds are quietly accumulating coins: Over the past 7 days, net outflows from exchanges totaled $7.488 million, with funds shifting from trading markets to long-term storage, indicating selling pressure is nearing an end.
• BTC is stabilizing at a key level: The current BTC price is $92,098.60, up 1.68% in 24 hours, holding steady around the $90,000 mark.

Against this backdrop, the whale’s decision to take profits and reduce BTC longs may be driven by:

• Locking in short-term gains and avoiding risk
• Reserving liquidity for potential adjustments
• Preparing for larger operations later

The True Risk Signals of the Account

Why do shorts remain?

The most noteworthy point is that, despite the overall unrealized loss of $930K, this whale still holds a 14x leveraged ETH short position. This indicates:

• The whale has a clear judgment on ETH’s future trend
• Even with a $949K unrealized loss, they believe this short is worth holding
• It may serve as a hedge against overall market risk

This “reducing BTC longs with one hand, holding ETH shorts with the other” operational logic reflects risk management rather than blindly chasing gains or panic selling.

Overall Market Risk Management Characteristics

According to related information, this is not an isolated phenomenon. On-chain data from January 9 shows collective position adjustments by whales:

• Some stop-loss and close losing positions (e.g., a whale closed a $15.53M ETH long with a loss of $616K)
• Some take profits and reallocate (e.g., the “PEPE maximum long” closed with a profit of $963K and reopened an $8.7M PEPE long)
• Some switch from short to long (e.g., the banded whale “pension-usdt.eth” switched from short to long, with 3x leverage on 20,000 ETH)

This high-frequency rebalancing activity indicates market participants are actively managing risk rather than stubbornly holding at the bottom.

What Does This Operation Mean?

From the nickname “Lightning Reversal,” it’s clear this whale’s style is quick reaction and flexible adjustment. Although the account is currently showing a $930K unrealized loss, ongoing operations suggest:

1. Strong risk tolerance: Continuing to operate with 20x and 14x leverage despite unrealized losses indicates substantial capital reserves.
2. Clear judgment: Reducing BTC longs but holding ETH shorts is a logical position adjustment, not random.
3. Market attitude: While adjusting, they are not fully bearish; holding BTC longs suggests some positive outlook for the future.

Summary

The “Lightning Reversal” whale’s current account state exhibits typical risk management features: against the backdrop of macro rate cut expectations and on-chain fund outflows, they lock in gains by taking profits and reducing BTC longs, while hedging with ETH shorts. Despite a $930K unrealized loss, this operational rhythm shows that smart money in the market is actively adjusting positions rather than blindly bottom-fishing or holding stubbornly. For ordinary traders, observing such whale operations is valuable, as their rebalancing often reflects the true market risk perception.