The risk of a crypto crash is rising as market makers continue to open millions of dollars worth of short positions, while BTC’s rejection from key resistance signals a potential correction.
The risk of a potential crypto crash is rising despite ongoing market recovery. Over the past week, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and XRP have posted massive gains of over 24%, 30.50%, and 51%, respectively, hinting at a shift in sentiment.
However, the factor that can turn this sentiment bearish and raise a red flag for the crypto market is the activity of leading trading firms and crypto whales who appear to be either shorting or profit-booking as the market rises.
Despite this impressive jump, market makers like Wintermute and Abraxas Capital continue to open millions worth of short positions, as reported by the crypto transaction tracker Onchain Lens.
According to the latest updates from Onchain Lens, on August 24, 2026, Wintermute increased its Hyperliquid short exposure from $146.19 million to $190.77 million. Not only did the trading firm double down on its short bets, but it also moved $99 million worth of BTC to Binance.
Meanwhile, today, August 25, 2026, the same firm once again increased its short exposure from $190.77 million to $211.53 million, which is now raising questions about whether a massive crypto crash is incoming in the market or if it is simply a normal short bet.
Moreover, Abraxas Capital was found building a massive $783 million worth of short positions on Hyperliquid. However, the firm also reportedly withdrew a large amount of ETH from Binance.
A report on X stated,
“Abraxas has previously been linked to delta-neutral strategies, where shorts can hedge large spot holdings rather than simply betting on a crash. Shorting the market while accumulating spot ETH. This is a massive hedge.”
Additional selling pressure built up, with Onchain Lens reporting that a Multicoin Capital-linked wallet address “0x76d” moved 106.11k HYPE worth $8.41 million to Coinbase Prime.
Alongside these market makers, a crypto whale, after being dormant, sold 1,400 BTC worth $111.6 million. The post on X noted that this massive sell-off surfaced after four years of inactivity, during which the whale had bought the BTC at an average price of $45,024.
All these activities together add a bearish signal and raise questions about what's next for the crypto market. Is the market poised for a massive crash or is it just a hedge?
At press, BTC is up 0.65% over the past 24 hours and trades at the $78,900 level. However, during the same period, the asset has also made an intraday high of $81,023. With this notable volatility, BTC’s trading soared 78% to $61.11 billion, indicating heightened participation from traders and investors.
Looking at TradingView’s daily chart, BTC price seems to be trending upward, moving above the 200-day Exponential Moving Average (EMA). However, after a massive 30% rally, the asset reached a key resistance near $82,500, from where it faces rejection.
Based on the current price action, if BTC fails to clear the $82,500 level, a potential correction could follow. Whereas, if the asset clears the $82,500 level and closes the daily candle above it, then it could open the door for further upside.
At press time, BTC’s Average Directional Index (ADX) reads 34.11, above the key threshold of 25, indicating strong trend strength.
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