Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Short Positions Increase as Market Sentiment Shifts to Fear

Bitcoin Short Positions Increase as Market Sentiment Shifts to Fear

BeInCryptoBeInCrypto2025/05/25 04:26
By:Oluwapelumi Adejumo

Data from major exchanges shows over 53% of traders are shorting Bitcoin, reflecting growing skepticism despite the recent record high.

Bitcoin recently broke above the $111,000 mark, setting a new all-time high. However, data across major exchanges suggests that traders are growing increasingly wary of a sustained rally.

CoinGlass data indicate that over 53% of Bitcoin positions are currently short, meaning a majority of traders are betting on a price drop. By contrast, just 47.43% of active positions are long.

Most Traders Turn Bearish Despite Bitcoin’s Recent All-Time High

The pattern is mirrored on Binance, where short trades make up 54.05% of open interest, compared to 45.95% for longs.

This growing tilt toward shorts reflects mounting skepticism in the market, despite Bitcoin reaching new highs.

The sentiment shift is reinforced by the latest move from prominent crypto whale James Wynn, who reversed his bullish stance after a multi-million dollar loss.

Wynn had previously maintained an aggressively leveraged 40x long position worth around $1.25 billion but exited after Bitcoin’s price dipped from $109,000 to roughly $107,107.

The trader closed his long exposure at a loss of $13.39 million, with liquidation unfolding in under an hour on May 25.

He has since opened a short position of 3,523 BTC—valued at approximately $377 million—at an entry price of $107,128. The new trade carries a liquidation threshold near $118,380.

Bitcoin Short Positions Increase as Market Sentiment Shifts to Fear image 0James Wynn Bitcoin Bet on Hyperliquid. Source: X/EmberCN

Market analysts have suggested that Wynn’s pivot reflects broader signs of exhaustion in the current bull cycle.

According to blockchain analytics firm Alhpractal, short-term holders (STHs) have begun distributing coins. Historically, a decline in STH supply often signals that Bitcoin is approaching a local top.

The firm noted that the Short-Term Holder Realized Price currently stands at $94,500, which is the last strong support before losses set in.

In contrast, long-term holders (LTHs) remain firm, with their realized price climbing to $33,000—highlighting a widening behavioral gap.

Bitcoin Short Positions Increase as Market Sentiment Shifts to Fear image 1Bitcoin Short-Term Holders Distribution. Source: Alphractal

Alphractal stated that while Bitcoin previously hit record highs under similar conditions in 2021, it warned that the current cycle may be nearing exhaustion.

It added that several macro indicators and historical halving trends point to a possible correction after October 2025.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like