The famous whale quickly started reducing positions after going long, taking profits of over $4 million in less than half a day.

On January 9th, a whale address (0x94d), considered by the market as MicroStrategy’s “on-chain counterpart,” executed a rapid strategic shift. After closing BTC short positions for a profit of $1.705 million in the early morning, it reversed to long positions, and within half a day, began taking profits on its long holdings. To date, it has closed approximately $4 million in positions. What does this series of actions reflect?

From Short Profit-Taking to Long Position Building, the Shift Occurred Overnight

According to the latest news, the whale’s strategic transition can be clearly traced:

Nighttime Short Profit-Taking

From January 8th to the early morning of January 9th, this address used 10x leverage to short BTC, turning losses into gains, and ultimately closed the position with a profit of $1.705 million. At this time, BTC was experiencing a decline, and this short position had an unrealized profit of $2.1 million.

Early Morning Reversal to Long

After closing the BTC short, the address immediately switched to a long strategy, establishing long positions across ten different cryptocurrencies in the early morning. Monitoring data shows its total long position size reached $356 million, mainly with high leverage:

Rapid Position Reduction in the Morning, What Signals Were Released?

( Reduction Scale and Pace

On the morning of the 9th, the address began reducing its long positions. Notably, it significantly cut about 165,000 SOL (~$23.2 million), decreasing its SOL holdings from $54 million to $30.7 million. It also reduced holdings in ZEC, PUMP, HYPE, among others, with all HYPE long positions fully closed.

As of press time, the address has closed about $4 million in total, with its total holdings decreasing from the initial $356 million to $352 million, and it continues to reduce positions.

) Why Start Reducing Positions So Quickly?

This operational speed is indeed noteworthy. The address built its long positions only in the early morning and began taking profits shortly after, which usually indicates:

• The address might be locking in profits from short positions and quickly capturing gains from a rebound market.
• Under high leverage, even small fluctuations can generate significant unrealized gains; rapid reduction may be a risk management measure.
• As a large holder, the address may have a special short-term market outlook or prediction.

Background: The “On-Chain Opponent” to MicroStrategy

This whale address has attracted attention mainly because its trading direction is opposite to MicroStrategy (a publicly listed company continuously buying BTC), which is clearly seen as its “on-chain counterpart” by the market. The address started building positions since December last year, initially with about $20 million, gradually increasing short positions on BTC, ETH, and other major coins, forming a stark contrast to MicroStrategy’s long strategy.

Now shifting from short to long, and then quickly reducing some positions, this “opponent” strategy adjustment itself is a market signal.

Summary

This well-known whale completed a full cycle within just a few hours: from short profit-taking to long position building, and then partial reduction. Although the $4 million in closed positions accounts for only about 1.1% of its total holdings of $352 million, the rapid strategic shift and reduction actions are noteworthy. Movements of such large holders often reflect their real-time judgment of market sentiment and direction. Observing these whales’ operational logic provides valuable insights into market sentiment shifts. Currently, the address continues to reduce holdings, and subsequent actions warrant ongoing monitoring.