After reaching a profit of $3.13 million, why did ZEC's largest short position turn around and increase holdings in DASH?

According to the latest news, on January 23rd, the whale address known as the “ZEC largest short” executed a series of significant actions: taking profits on ETH short positions worth $3.13 million, then turning around to increase DASH long positions. The market signals behind these moves are worth noting.

Details of the Whale’s Operations

Take profit on ETH short, floating profit hits new high

This address partially took profits on ETH short positions, reducing 956.37 ETH shorts temporarily, worth about $3.13 million. After the reduction, its ETH short position still remains at a high level of $130 million, with current floating profit of approximately $14.3 million.

This indicates that even after taking profits of $3.13 million, the whale still maintains a large short exposure, suggesting its bearish outlook on ETH remains unchanged, only opting for partial profit-taking.

Reverses within half an hour to increase DASH, position doubles

More notably, within half an hour after taking profits, the address continuously added to DASH longs, increasing by 4,476.76 DASH, valued at about $440,000. This move raised its DASH long position to a total of $1.85 million.

This shift appears particularly abrupt: from profit-taking on ETH shorts to immediately increasing DASH longs. It’s not just simple fund transfer but a clear strategic adjustment.

The Uniqueness of the Whale’s Identity

This address is called the “ZEC largest short” due to its aggressive shorting history on Zcash. The address started shorting ZEC at $184, ultimately turning a profit despite a floating loss of $21 million. This demonstrates:

• Deep fundamental research capability on the coin
• Psychological resilience to large floating losses
• Patience for long-term positions

Such whale operations are often not driven by emotion but based on market fundamentals judgment.

Market Context and Strategy Interpretation

According to relevant information, the current crypto market shows clear differentiation:

• Overall market downtrend, BTC drops below $90,000, ETH below $3,000
• GameFi, AI, RWA sectors remain relatively resilient
• ZEC performs relatively well among Layer1 projects, up 3.33% in 24 hours
• DASH, as a privacy coin, has recently gained market attention

The whale’s actions may reflect the following judgments:

Regarding ETH: Maintaining the short position indicates a belief that ETH still faces downside risk, but partial profit-taking could be to lock in gains and reduce risk exposure.

Regarding DASH: Increasing long positions suggests confidence in the coin’s future performance. Coupled with market news, DASH as a privacy coin may have relative advantages in the current environment.

Personal Observation

From this whale’s operations, it’s clear that it’s not blindly chasing the trend but is flexibly adjusting positions based on existing judgments. Taking profits on ETH shorts while increasing DASH longs demonstrates a professional trader’s nuanced approach during a market split—profiting in confirmed directions while positioning for new opportunities.

Such whale movements often have certain market reference value, but it’s important to remember that even professional traders’ judgments are not 100% accurate; blindly following carries risks as well.

Summary

The core points of this operation are threefold: First, after realizing a floating profit of $14.3 million on ETH shorts, the whale chose to partially take profits but kept most of its short exposure, indicating its bearish outlook on ETH remains unchanged; second, it turned around to increase DASH longs, showing confidence in this coin; third, the entire move reflects a professional trader’s flexible strategic adjustment in a differentiated market environment. For ordinary investors, such whale movements can serve as market references but should not be the sole basis for decision-making.