This legendary $197M bear has flipped long altcoins with high leverage, but funding rates signal a dangerous trap
A trader famous for a $197M Bitcoin short has now aggressively opened large leveraged long positions in altcoins like SOL, despite funding rates suggesting potential risk.Summary
A prominent trader, known publicly as "BitcoinOG" after closing a massive $197 million Bitcoin short in October, has shifted strategy to aggressively take large, leveraged long positions in altcoins, particularly Solana (SOL).
On December 25th, this wallet executed 850 SOL long positions within a single hour around the $123 price level, suggesting algorithmic execution rather than manual trading. This move is part of a larger portfolio bet, evidenced by significant USDC deposits (net inflow of $291.5 million) and the posting of large limit orders across BTC, ETH, and SOL, indicating preparation for substantial, leveraged exposure.
While this activity signals a serious participant's belief in near-term risk appetite, the article warns of danger signaled by high funding rates on the long positions. If the market moves sideways, paying positive funding becomes costly (time as the enemy), and a correlated crypto sell-off could simultaneously hit the diversified basket, forcing the trader to defend collateral or quickly de-risk. Future monitoring should focus on whether the trader repeats the clustered execution (conviction) or begins trimming/hedging (caution).
(Source：CryptoSlate)