Key Highlights

• A whale linked to Fasanara Capital currently holds a $38 million short position in cryptocurrency. This raises the question: what effect will it have on Bitcoin’s price?

• Negative funding rates on Binance and Bybit suggest a notable appetite for short positions, even as BTC recently increased in value.

Bitcoin (BTC) found it challenging to surpass $78,000 on Friday, yet the general outlook appears optimistic. Currently, BTC has climbed 29% from its yearly low of $60,100 recorded on February 6. Many analysts speculate it may soon experience a substantial breakout. Simultaneously, bearish whales active on HyperLiquid exchanges continue to hold significant short positions. In fact, this whale has accumulated $159 million in profits over the last seven months. Could this positioning be a market signal worth noting?

The whale operating on the HyperLiquid exchange, under the address 0x7fda…c517d1 and known as BobbyBigSize, capitalized during the October-November 2025 market crash by taking leveraged shorts on assets such as Ether (ETH), Hyperliquid (HYPE), and Avalanche (AVAX). However, this trader has recently seen losses, totaling $561,000 over the last month.

Whales Favor ETH but Show Caution on BTC and Altcoins

This whale has a track record of using algorithmic trading to initiate short-term long positions in Bitcoin and Solana (SOL). To date, this trader has executed around $11 billion worth of trades on HyperLiquid, with 63% of those being successful, which is pretty impressive. Currently, BobbyBigSize manages $19.4 million in assets on the platform.

As of now, BobbyBigSize is maintaining a $38 million short position in BTC alongside various altcoins. Recently, a leveraged long position of $21 million in ETH was also established, indicating some short-term confidence. Overall, the portfolio suggests a bearish nature, likely anticipating a near-term market correction.

Data from Hyperdash indicates that BobbyBigSize’s average trade duration is slightly over two weeks, while the median position lasts less than four days. There have been earlier connections made between this address and Fasanara Capital, an asset management firm based in London that is said to manage over $5 billion in assets.

Fasanara Digital’s website states that the company was established in 2018 and oversees $400 million in market-neutral strategies and venture investments. In addition to that, $150 million is involved through a quantitative multi-manager setup across various liquidity markets. However, the specific strategy the fund employs for cryptocurrency investment remains somewhat unclear.

Currently, Bitcoin and Ethereum funding rates on HyperLiquid are marginally positive, hinting at a moderate interest in leveraged long positions. Typically, in neutral conditions, long holders pay between 6% to 12% annually to retain their positions. Conversely, Binance and Bybit now feature negative funding rates, indicating a strong demand for short leverage.

Algorithmic traders can be rather erratic, and the losses incurred by BobbyBigSize recently illustrate that no trading strategy is foolproof. Nonetheless, the whale’s bearish stance coincides with a rising interest in leveraged short positions. Therefore, Bitcoin traders may want to keep in mind the possibility of revisiting the $75,000 price point.