Hyperliquid Whales Shift Strategies: BTC Longs Decline, ETH Shorts Dominate

By: crypto insight|2025/12/26 19:30:16

Key Takeaways

A significant reduction in Bitcoin long positions has been observed on Hyperliquid, with large holders decreasing by nearly 50% since October.
Ethereum short positions have surged, now double compared to long positions as of the latest data.
Major Bitcoin and Ethereum short holders are facing liquidation thresholds, with substantial funds at risk based on current market conditions.
Data highlights volatility in current crypto trading strategies on Hyperliquid, reflecting ongoing market uncertainty.

WEEX Crypto News, 26 December 2025

In recent developments within the cryptocurrency trading platform Hyperliquid, a notable shift in whale activity has emerged. According to the latest findings by HyperInsight, there has been a dramatic decrease in the number of substantial Bitcoin long position holders, contrasted by a surge in Ethereum shorts. This trend marks a shift in market sentiment among large-scale traders and has significant implications for the cryptocurrency market dynamics.

Whale Activity Affecting Bitcoin and Ethereum

As of December 26, 2025, the data shows that the number of Bitcoin (BTC) long whales, or large-scale investors, has significantly decreased to approximately 122. This marks a steep decline from around 234 such investors recorded on October 14 of the same year. Conversely, Bitcoin short positions have slightly decreased, with 116 investors currently holding significant short positions compared to 125 in October. This shift indicates a growing skepticism among large investors regarding the immediate bullish potential of Bitcoin.

In tandem with the changes in Bitcoin positions, Ethereum (ETH) has seen its short positions soar. The number of large-scale Ethereum short holders has grown to 113, which is double the number of Ethereum long holders at 58. This widening gap accentuates a bearish outlook towards Ethereum among substantial investors on Hyperliquid. The divergence in the number of long and short positions also points to a potentially pivotal change in trading strategies as we head into 2026.

Key Metrics and Financial Implications

At the center of the bearish activities is a prominent Bitcoin short whale with the wallet address “0x50b,” which holds a position with an average entry price of approximately $88,200 per Bitcoin and a liquidation price at $94,100. The position scale is substantial, valued at about $76.44 million. This suggests that the investor is operating under a strategy that anticipates further depreciation of Bitcoin’s value, which, if market trends change, could face liquidation risks if Bitcoin rises.

Similarly, the largest Ethereum short whale, known by the alias “20 Million Band Hunter,” holds a position with an average entry price of $3,129 and a liquidation price set at $3,796. This Ethereum position is held at a value of approximately $70.23 million, a sizable stake that indicates strong bearish sentiment. Such positions suggest an anticipation of continued downward pressure on Ethereum prices.

-- Price

Contextual Market Movements and Influences

The recent shifts in whale strategies on Hyperliquid add another layer of complexity to the existing market dynamics. Cryptocurrency markets are often influenced by the actions of large holders, who can sway market confidence and trends significantly. These whales, by adjusting their positions, are reflecting and potentially amplifying broader market sentiments that perceive vulnerability in Bitcoin’s and Ethereum’s short-term outlook.

The crypto market’s inherent volatility makes it both challenging and intriguing for traders. The observed movements in Hyperliquid’s trading patterns are possibly aligned with recent macroeconomic desencounters and regulatory discussions impacting the wider crypto ecosystem. As policy directions and global economic conditions evolve, these factors could further influence trader sentiment and financial strategies on platforms like Hyperliquid.

The Role of Hyperliquid and Market Reactions

Hyperliquid as a trading platform continues to serve a critical role in the cryptocurrency ecosystem, acting as a hub for high-stake trading activities. The platform’s infrastructure and transparency enable active participation by institutional players and large investors. The current market trends witnessed within Hyperliquid underscore its position as a bellwether for emerging trading strategies and sentiment shifts.

This dynamic not only underscores changes in investment tactics but also highlights Hyperliquid’s potential as a significant platform for future market movements. As more traders align their strategies with the evolving economic backdrop, the trading platform will likely remain pivotal in facilitating these substantial financial maneuvers.

For traders and investors looking to engage with a platform that provides such comprehensive insights and capabilities, Weex offers an opportunity. [Sign up on Weex](https://www.weex.com/register?vipCode=vrmi) to explore advanced trading features and insights into the constantly evolving cryptocurrency markets.

FAQ

What has caused the shift from Bitcoin longs to Ethereum shorts on Hyperliquid?

The shift is primarily driven by large investors reevaluating their positions in response to recent market volatility and macroeconomic uncertainties impacting Bitcoin’s short-term outlook compared to Ethereum.

How significant is the reduction in Bitcoin long positions on Hyperliquid?

Bitcoin longs have reduced by almost 50% since October, indicating a substantial shift of sentiment among large-scale investors against the backdrop of fluctuating market conditions.

What are the risks for major short positions currently held on Hyperliquid?

The main risks involve potential liquidations if the market moves against the positions. For instance, Bitcoin shorts face a liquidation price close to current market levels, which could lead to significant financial impacts.

Why do Ethereum short positions currently outnumber long positions?

The increase in ETH shorts compared to longs highlights growing bearish sentiment, possibly fueled by expectations of further price declines amidst uncertain market developments.

How do these whale activities impact overall market sentiment?

Whale activities often signal broader market trends and can influence general investor sentiment. Such significant shifts might predict or reflect imminent changes in market dynamics, affecting other traders’ strategies.

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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